You really don’t make money from your mobile phone! Samsung tablets more profitable than smartphones

[Mobile China News]According to reports, Samsung makes more money from Galaxy tablets than smartphones. Not the tablet business as a whole, but on a per-unit basis. According to Twitter user @Tech_Reve, the company's tablet operating profit margin was about 10% in the first quarter of this year. In comparison, profit margins for smartphones and smartwatches are around 7-8%.

Samsung Galaxy Tab S8

This may be due to the stark difference in market size between tablets and smartphones. When you're looking to buy a new Android tablet, there aren't many options. In fact, Samsung is currently the only brand in the world that regularly launches flagship Android tablets. 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.

Samsung tablets have higher profit margins than smartphones

On the other hand, the smartphone market is “too crowded.” There are dozens of options in every price range. Even with a strictly set budget, without any flexibility, there are some models to choose from. This fierce price competition forces companies to maintain low profit margins in order to sell more products. At the same time, smartwatch sales are not large and profitability has decreased.

Samsung Galaxy Tab S8

According to reports, Samsung earned approximately 300 billion won (approximately RMB 1.6 billion) from tablets in the first quarter of 2023. That's almost half of the company's total net operating profit of 640 billion won during the same period. However, Samsung Electronics suffered a huge loss in its semiconductor business in the first quarter of this year, with losses reaching 4.58 trillion won (approximately RMB 24.484 billion). Tablet profits are minuscule in the grand scheme of things. But the bottom line is that Samsung makes more money from each Galaxy tablet than it does from a Galaxy smartphone or smartwatch.

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. But it is said that Samsung will bring it forward 2-3 weeks this year, and it is likely to be released in late July. The new tablet will be unveiled together with the Galaxy Z Fold 5, Galaxy Z Flip 5 and Galaxy Watch 6 series. At the same time, Samsung may also launch new TWS headphones.

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