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Samsung vs. Apple: How did their holiday quarters compare?

Published Jan 28th, 2016 8:45AM EST
Samsung Earnings Q4 2015

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Samsung posted earnings in line with expectations early Thursday morning, noting a sharp slowdown in growth that the company believes will continue through 2016. Samsung said on Thursday that it earned a fourth-quarter operating profit of 6.14 trillion Korean won, or approximately $4.4 billion. The figure marks a healthy 16% gain, however Samsung said net profit tumbled 40% to 3.2 trillion Korean won, or $2.7 billion, due to nonoperating expenses.

The sharp slide comes in the same quarter that Samsung’s chief rival Apple posted a net profit that inched up to $18.4 billion, besting its own prior record and marking the most profitable three-quarter period any company has ever reported.

MUST SEE: Apple and the Terrible, Horrible, No Good, Very Bad, Record-Breaking Quarter

Samsung said that while its December-quarter revenue came in at 53.32 trillion won, or $50.8 billion, it saw increased pressure in both its mobile and semiconductor businesses, which represent its two biggest businesses by a wide margin. Those struggles are unfortunately expected to continue into 2016.

“As for the outlook for 2016, Samsung expects single-digit percentage growth in both the smartphone and tablet categories amid softening demand and intensifying competition,” Samsung said in a statement alongside its earnings release. “Despite this challenging environment, the company will focus on increasing smartphone shipments and maintaining a double-digit margin through releases of competitive devices and an optimized product portfolio.”

Meanwhile, Samsung’s top competitor Apple also said that growth in its iPhone business would slow substantially in 2016. The tough year for smartphone makers is believed by some to mark the start of a slide in the global smartphone business, while others believe that Apple still has a big opportunity with its new iPhone 7 lineup expected to debut this coming September.

Samsung’s next-generation flagship smartphones are expected to launch much sooner. The new Galaxy S7 and Galaxy S7 edge are both rumored to be unveiled next month ahead of release in early March.

Samsung shares closed down 2.55% at 1,145,000 won on Thursday.

Zach Epstein
Zach Epstein Executive Editor

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content. Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment.

His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.