Making money does not rely on mobile phones! Samsung’s tablet computers have higher profits than smartphones

Samsung's tablets are more profitable than their smartphones and making money doesn't depend on mobile phones

【PhoneAuto News】According to reports, Samsung makes more money from its Galaxy tablet than its smartphones. Not the entire tablet business, but per unit sold. According to Twitter user @Tech_Reve, the operating profit margin for the company’s tablets was about 10% in the first quarter of this year. In comparison, the profit margin for smartphones and smartwatches is around 7-8%.

Samsung Galaxy Tab S8

This may be because there is a significant difference in the market size between tablets and smartphones. When you want to buy a new Android tablet, there aren’t many choices. In fact, Samsung is currently the only brand that regularly releases flagship Android tablets worldwide. Following the launch of three Galaxy Tab S8 models last year, Samsung Electronics plans to launch three new flagship products (Galaxy Tab S9 series) in the second half of this year.

On the other hand, the smartphone market is “overcrowded.” There are dozens of choices in every price range. Even if you have a strict budget, with no flexibility, you can still find some models to choose from. This fierce price competition forces companies to maintain low profit margins to sell more products. Meanwhile, smartwatch sales are not significant, and profitability has decreased.

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Samsung Galaxy Tab S8

Reportedly, Samsung earned about KRW 300 billion (about RMB 1.6 billion) from tablets in the first quarter of 2023. This is nearly half of the company’s net operating profit of KRW 6.4 trillion during the same period. However, Samsung Electronics’ semiconductor business suffered huge losses in the first quarter of this year, with losses reaching KRW 4.58 trillion (about RMB 24.484 billion). The profit from tablets is insignificant in the overall plan. But most importantly, Samsung makes more money per unit from its Galaxy tablets than its smartphones or smartwatches.

Samsung is preparing to launch the Galaxy Tab S9 series later this year. The new flagship tablet will be unveiled at the company’s next Galaxy Unpacked event. Typically, Samsung’s second Unpacked event of the year is held in August. However, it is said that Samsung will advance it by 2-3 weeks this year and is likely to be released in late July. The new tablet will be unveiled alongside the Galaxy Z Fold 5, Galaxy Z Flip 5, and Galaxy Watch 6 series. At the same time, Samsung may also launch a brand new TWS headset.

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