First Quarter 2016 Reports: Samsung Still On Top
The first quarter of the year 2016 has come and past, and what a quarter. Of course after every quarter manufacturers always release a sort of statement of how they did in the quarter for all to see. A report published by TrendForce has shown that domination by Samsung has increased quarter to quarter. So significant was the increase that Samsung’s market share is almost double of that Apple’s at 27.80% compared to 14.40%.
Of course this is sort of expected since Samsung launched the Samsung Galaxy S7 and S7 Edge globally in March. The early release of the smartphones proved to be a blessing since they shipped 81 million units of smartphones in the first quarter alone. Of the 81 million units shipped out of their factory 10 million of them were Galaxy S7 units. Revenue were reported to be KRW49.78 trillion (MYR), 5.7% increase over last year’s quarter one. Impressively though they managed to increase their profit numbers by 12% to KRW6.68 trillion (MYR) compared to 2015 quarter 1. With lackluster performance since last year, it was surprising for Samsung to make such profit numbers. Despite this profit and gain for the first quarter Samsung’s stock price dropped 2.85%. This decrease could be due to the slow down in smartphone demands globally.
Apple had to settle for 42 million units of smartphones with their uneventful launch of the iPhone SE. For this quarter Apple actually reports a decline in revenue over the last year. Apple has reported a US$ 50.6 billion (MYR) in revene for their second financial quarter which is the first quarter of 2016. Last year in Apple’s first quarter of year 2016 (October – December, 2015) they made US$75.9 billion (MYR) which in the same quarter last year they made US$58 billion (MYR). This is a whopping 33% and 13% drop in revenue comparetively. Income is tumbling as well when their US$10.5 billion (MYR) profits are compared to US$13.6 billion (MYR) year-over-year. Despite all these negatives they did score quite a bit with their services; now that it has grown by 20% year-over-year it is Apple’s second largest revenue stream.
Sitting in third place is China’s top brand, Huawei holding 9.30% of market share compared to 9.50% percent in last year’s fourth quarter. Although that is a slight decrease quarter-over-quarter, it was worth mentioning that Huawei is looking at a healthy growth in the market and is noted to be catching up to Apple in terms of market share. Trailing behind these guys are Lenovo at 5.80% market share, Xiaomi at 5.50% share and LG at 5.10% share. All of them sees an increase in share since last year’s fourth quarter.
LG’s story of a slightly increased market share though is not all flowery. In total, LG Electronics made KRW505.2 billion (MYR) in profits out of KRW13.36 trillion in sales. This is mainly contributed by LG’s home appliances and home entertainment division. Though the vehicle compments saw a small loss of KRW15.8 billion it does not compare to mobile divisions KRW202 billion operating loss. A 15.5% decrease of sales over the last year as well does not help LG Mobile’s case. LG blames the loss on the increased expenses in developing and marketing their modular G5.
On another news, Alphabet show an increase of revenue over the last year but curiously had their stock price drop by 4%. Though the their revenue increased 17% to US$20.25 billion (MYR) year-over-year, profitting US$4.2 billion (MYR) they did not actually meet market expectations and though could contribute to the drop in stock price. It was not all low for Alphabet though, more accurately Google. Google Play had a hubmble beginning in 2010 with no more than 30,000 apps available in the store. This number has now grown to about 2 million by this first quarter. What is even better is that there are about 11.1 billion downloads from Google Play this first quarter for 2016 alone. We expect this number to continue rising. The top three most downloaded app from the market store are Whatsapp Messenger, Facebook, and Facebook Messenger globally. It is noted though there are more paid app users in iOS compared to Android.