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Samsung Electronics is projected to report their strongest quarterly operating profit, and for the first time to surpass Apple Inc (NASDAQ: AAPL). According to Reuters Samsung’s second quarter operating profit of 13.29 trillion Korean won ($11.5 billion) on revenues of 58.79 trillion Korean won.
Besides Samsung’s impressive electronics divisions, which includes smartphones, computers, televisions and more, where Samsung managed to get a head is in the semiconductor business. “Samsung’s dominance in components that matter gives it the upper hand at least through the entire next year,” said Lee Jae-yun, an analyst at Yuanta Securities Korea. “There is only so much either Apple and Samsung can do right now to make their smartphones stand out, unless technology like foldable displays reshapes the market.” Bloomberg reported.
Samsung makes its own chips, and is a supplier as well. The tech giant managed to reduce manufacturing costs over time. “Samsung’s been successful with cutting manufacturing costs for memory chips, and that’s been a big factor, while display sales helped to boost the earnings,” said Greg Roh, an analyst at HMC Investment Securities Co. according to Bloomberg “Chip prices will keep rising and another record operating profit is in sight for Samsung in the third quarter.”
After the Galaxy Note 7 recall, there have been concerns that Samsung’s smartphone division will suffer major losses in demand. Analysts now claim that Galaxy S8 features are expected to be very attractive for customers. The upcoming device’s features include a bezel-less display and voice-enabled digital assistant.
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