Samsung makes more profit from Galaxy tablets than smartphones
Samsung is reportedly making more money off Galaxy tablets than smartphones. No, not the tablet business as a whole but per unit sold. According to Twitter tipster @Tech_Reve, the company’s operating profit margin for tablets was at around ten percent in the first quarter of this year. In comparison, the profit margin for smartphones and smartwatches was around 7-8 percent.
This is likely because of the stark difference in the market size of tablets and smartphones. When you go to buy a new Android tablet, there aren’t many options out there. In fact, Samsung is the only brand that regularly launches flagship Android tablets today. It is preparing to launch three new flagship models later this year (Galaxy Tab S9 series), following up on last year’s three Galaxy Tab S8 models.
On the other hand, the smartphone market is too crowded. There are dozens of options in every price range you look at. Even if you have strictly set your budget with no flexibility, you would find a handful of models to pick from. This stiff price competition makes companies keep their margins low so they can potentially sell more units. Smartwatches, meanwhile, don’t sell in huge volume, thus lowering their profitability.
Overall, Samsung made about KRW 300 billion (roughly $224 million) from tablets in Q1 2023. That’s almost half of the company’s total net operating profit of KRW 640 billion during that period. However, the Korean behemoth suffered massive losses from the semiconductor business in the first three months of 2023. We are talking about a loss of KRW 4.58 trillion (over $345 billion). So the profit from tablets is peanuts in the grand scheme of things. But the bottom line is that Samsung makes more money from each Galaxy tablet sold than a Galaxy smartphone or smartwatch.
The new Samsung flagship tablets may arrive in late July
As mentioned above, Samsung is gearing up to launch the Galaxy Tab S9 series later this year. The new flagship tablets will break cover during the company’s next Galaxy Unpacked event. Usually, the second Unpacked of the year takes place in August. But Samsung is said to be bringing it forward this year by 2-3 weeks. We are looking at a late July date. The new tablets will be accompanied by the Galaxy Z Fold 5 and Galaxy Z Flip 5 foldables, as well as the Galaxy Watch 6 series. We might get a new pair of TWS earbuds as well. Stay tuned for the official date of the next Galaxy Unpacked.
Samsung is reportedly making more money off Galaxy tablets than smartphones. No, not the tablet business as a whole but per unit sold. According to Twitter tipster @Tech_Reve, the company’s operating profit margin for tablets was at around ten percent in the first quarter of this year. In comparison, the profit margin for smartphones and smartwatches was around 7-8 percent.
This is likely because of the stark difference in the market size of tablets and smartphones. When you go to buy a new Android tablet, there aren’t many options out there. In fact, Samsung is the only brand that regularly launches flagship Android tablets today. It is preparing to launch three new flagship models later this year (Galaxy Tab S9 series), following up on last year’s three Galaxy Tab S8 models.
On the other hand, the smartphone market is too crowded. There are dozens of options in every price range you look at. Even if you have strictly set your budget with no flexibility, you would find a handful of models to pick from. This stiff price competition makes companies keep their margins low so they can potentially sell more units. Smartwatches, meanwhile, don’t sell in huge volume, thus lowering their profitability.
Overall, Samsung made about KRW 300 billion (roughly $224 million) from tablets in Q1 2023. That’s almost half of the company’s total net operating profit of KRW 640 billion during that period. However, the Korean behemoth suffered massive losses from the semiconductor business in the first three months of 2023. We are talking about a loss of KRW 4.58 trillion (over $345 billion). So the profit from tablets is peanuts in the grand scheme of things. But the bottom line is that Samsung makes more money from each Galaxy tablet sold than a Galaxy smartphone or smartwatch.
The new Samsung flagship tablets may arrive in late July
As mentioned above, Samsung is gearing up to launch the Galaxy Tab S9 series later this year. The new flagship tablets will break cover during the company’s next Galaxy Unpacked event. Usually, the second Unpacked of the year takes place in August. But Samsung is said to be bringing it forward this year by 2-3 weeks. We are looking at a late July date. The new tablets will be accompanied by the Galaxy Z Fold 5 and Galaxy Z Flip 5 foldables, as well as the Galaxy Watch 6 series. We might get a new pair of TWS earbuds as well. Stay tuned for the official date of the next Galaxy Unpacked.
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