1/30/2012

Partners profit margin in 2011 between Apple and Samsung

Jan. 30, according to the Korea Financial Supervisory Service and the securities industry, Samsung Electronics mobile key partners archived 5~11% range of the operating profit margin. This rate shows average 3 times more than Taiwanese key partners of Apple who listed in Taiwan stock market. In fact according to market research firm Strategy Analytics(SA), the average sales price of iPhone is $650, but its manufacturing cost was knows a half of retail price, $280. Apple's fourth quarter profit of last year, 4 times of Samsung's was supposed due to the Apple's strategies of strong cost saving of partners.

In fact, even though it looks perfect shareholders' taste, Samsung seems to have not much possibility to reduce this higher procurement cost from Korean partners unless they change its providing line card to China or Taiwan like as Apple. However, they never take an affair and  it is not just simple matter of business view for Samsung in Korea. Korean people and even government put implied pressure to Samsung as a leading company should grow Korean industry eco-system and make win-win relationship between conglomerates and  small-medium companies.


Samsung, Apple’s key partners operating profit rate (3Q, 2011)

Samsung’s partner
Apple’s partner
Partron
(Antenna, Camera Module)
11%
Foxconn
1.5%
Daeduck (PCB)
9%
Compeq (PCB)
-2.2%
Intops(Case)
6.4%
Inventec Appliance
1.3%
S-mac(Touch Screen Panel)
5.3%
Pegatron(Mac Assem)
1.2%
SMD(AMOLED panel)
15%
Chimei Innolux
-12.7%

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