Samsung Soars High: Records Quarterly Profit More Than Apple
Samsung shall no longer only be quoted as the irresponsible company after the Note7 debacle, as the market is showing love to its new smartphones, namely the Samsung Galaxy S8 and the S8+. Moreover, the company is stepping into the semiconductor business and bringing in greater incentives. While the news of the moment is that, Samsung is expected to make more operating profit for the very first time compared to its competitor Apple Inc.
Samsung is setting its stronger stance and sending out a bold message to all the speculations hovering over the quality of its products. The latest release about the Korean technology company's quarterly profits scaling above Apple Inc. has come as a shock for some, while for some, it comes as a well-rehearsed model of success.
Digging deeper it is understood that the smartphone manufacturing company diversified its scope of business, by entering the microchip market and OLED panel production not just for its own products but also by making its reach open to other IT companies. Apple hasn't been left behind, as it has also ordered the OLED panels for the about-to-be-launched iPhone 8.
Samsung has made a record of encompassing tremendous operating profits of 14 trillion Korean won(approx. Rs 792 billion) and revenue of 60 trillion won(approx. Rs 3.4 trillion) in the second quarter of 2017. Hence, becoming the world's most profitable non-financial company. While in comparison, Apple is expected to release its operating profit to be $10.49 billion(approx. Rs 676 billion) and revenue to be $44.9 billion(approx. Rs 2.9 trillion) in the quarter ending June 17th. Going by these estimates, Samsung Electronics for the first time shall leave behind Apple Inc. in its profit margins for a given quarter.
For Samsung, the success comes after the Galaxy Note7 launch and failure last year. But the company has made use of the past lessons, to add to the vibrant performance in the current quarter. The release of the Samsung Galaxy S8 and the S8+ have also played a role in lifting the reputation of the company, with their high-scoring features including the infinity screen.
The Korean IT multinational is said to capture other areas of electronics like a semiconductor business, hence, lessening the weight of expectations laid on the smartphone market. Reportedly, the semiconductor market Samsung is drawing towards is responsible for around 60% of the operating profit made in the second quarter of this year. More investments are being considered to be made in other areas other than the smartphone market. This could increase the potential of Samsung by leaps and bounds in the IT industry.
- Images from samsung.com