Ever since Samsung and Apple emerged as the most dominant smartphone manufacturers, it is for the first time that Samsung’s operating profits are set to surpass its opponent Apple.
According to the Korean smartphone giant, the company’s operating profits in the second quarter of 2017 has already hit a record of 14 trillion won.
This record would make Samsung Electronics emerge as the most profitable non-financial company in the world, a landmark moment after a tumultuous year.
It is believed that Samsung handsets have drastically improved despite their last year’s botched release of the Galaxy Note 7 phone. This credit, however, goes to its very well-received Galaxy S8 which was supported by a huge marketing strategy and driving sales.
However, unlike that of Apple, Samsung does not incur most of its profits from its smartphones.
Thus, most of the company’s increase in revenue is likely to have been driven by the company’s huge display and microchip manufacturing division, with great demand for electronics and computer serving.
Though Apple will be releasing its reports for the same period only in the next month, according to analysts the operating profits will be of £8.1bn, only a slight increase as compared to last year’s, indicating a decrease in growth.
Now, this will be the first time that the US mega joint’s operating profits will fall behind Samsung Electronics, ever since the two became the biggest players in the Android phone market. Apple and Samsung together account for more than a third of the total global sales between them.
By releasing their earnings result recently, Samsung said that its revenues have increased by 17.7 per cent to approximately around 60 trillion won in 2017’s second quarter.
Its operating profits were increased to 72 per cent from that of 8.1 trillion, a year back. With such a high growth, the fact that Samsung’s profits have surpassed that of Apple’s is unbelievably true!