Samsung may have passed Apple's profits for the first time, buoyed by Q2 chip sales
by Daniel Petrov / Jul 10, 2017, 3:17 AM
According to Cheong Chang-won from Nomura Securities: "A super cycle was expected for Samsung’s semiconductor and display businesses, but it has turned out to be an ultra-super cycle for the memory chip business." A hint of how would that ultra cycle translate to Samsung's earnings was given on Friday, when the company issued its mandated profit forecast for Q2, saying that it has likely made $12.1 billion in operating profit.
Since Samsung usually reports the final audited numbers a few weeks after its forecast with a very small margin of surprise, it's not hard to assume that it indeed made about $4 billion a month on average in the April-June period. For a comparison, Apple's profit forecast is $10.7 billion for the period. Despite the fact that Apple usually surprises on the upside, that surprise might not be all the way up to $12 billion, hence leading analysts to the thought that, last quarter, Samsung might have surpassed Apple in terms of profits for the first time.
Granted, most of that is not even due to Samsung's smartphones, but rather its components business, yet, at least for a brief period, it might feel good about itself. The OLED iPhone 8 is expected to throw Apple in a super-cycle of upgrades of its own, though, so that joy might be short-lived. Still, we are happy when those two are duking it out, as we all benefit from the resulting innovation in the end.
source: The Investor
Posts: 303; Member since: Nov 06, 2013
Another day, another loss for iPhoneArena. They really THOUGHT after the Note7!
posted on Jul 10, 2017, 3:27 AM 2
Posts: 452; Member since: Feb 26, 2015
I really hope Microsoft comes with a phone and solve the missing apps problems by allowing it to install Android apps. I prefer Microsoft over Apple and Samsung, they are the best when it comes to ide & development tools and environments
posted on Jul 10, 2017, 4:13 AM 1
Posts: 540; Member since: May 09, 2017
yeah. I was really disappointed to find out that they'd put the 'run Android apps natively' plan on the backburner. If they'd have pulled that off I'm sure Windows Phone would have made massive gains in market share. Instead they've almost disappeared.
posted on Jul 10, 2017, 4:29 AM 0
Posts: 2457; Member since: Apr 08, 2016
Honestly, i prefer almost everything about microsoft over whatever android and iphone has to offer tbh. I'm just hoping that msft knocks it out of the park with their new phone regardless of how much it cost and i'm confident that developers will at least show them more love this time around, with the most important apps at least. Just wondering how the panay-kipman combo will be like.
posted on Jul 10, 2017, 5:13 AM 0
Posts: 310; Member since: Jul 06, 2017
and iSheep's will still say 10.7>12.1
posted on Jul 10, 2017, 3:37 AM 2
Misleading article. This is Samsung’s operating profits vs Apples forecast. Despite that Samsung sell almost every home appliance and household electrical as well as a brand new phone pretty much every week. I’m just not surprised they didn’t have higher profits than Apple sooner.
posted on Jul 10, 2017, 5:34 AM 0
Posts: 14967; Member since: Sep 25, 2013
First off a freezer doesn't compare to a phone. That freezer will have low sales margins vs a phone so thus it cost more. When I use to work at Whirlpool, I know exactly at the time how much it costs. Also those fancy Samsung fridges do quite a bit. Not saying they are worth $5000. Just saying they put a lot of R&D into them and are far less overpriced vs Apple products.
posted on Jul 10, 2017, 11:10 AM 0
Posts: 1976; Member since: May 26, 2011
Their washer and dryers are actually awesome. It wasn't until last year when they had to recall and got negative spotlight on them (this is someone who's currently using LG's steam washer/dryer) As for the smart appliance
posted on Jul 10, 2017, 11:46 AM 0
Posts: 14967; Member since: Sep 25, 2013
There are several reasosn why Samsung tends to have less profits, though they have a much larger product portfolio. The first is the easiest, its because they make so many products. Apple makes profits because mostly because they don't make anything. They buy everything 3rd party, which is cheaper than making it yourself. They only have ot deal with sogftware, which they have always been terrible at, but software has less cost associated with it vs hardware. Samsung makes lots of products, like phones, appliances and components and chip and more. All of that comes ata huge cost. This is why Samsung has one of the largest R&D budgets, is because they have to make progress on so many things. Also consider how much money Samsung spends in a year. An R&D budget of above $10B, then you have to consider all the factories, over 300,000 employees for Samsung Electronics, the distrubiton costs for all those products and more. Samsung has lots of overhead that Apple doesn't have toi deal with. Samsung also has more customers than Apple, which also comes at great cost. Also Samsung doesn't get the benefit of hiding money offshore to prevent begin taxed like Apple does, which also means more profits because less money is being taxed. Then add the fact Apple doesn't want to pay what it agrees to pay to OEM who provide components or technology to them. Samsung is 25% GDP of its home country. Apple isn't even 0.1% of the GDP of the USA. Which means Apple literally has no bearing on GDP here at all...vs if Samsung was to drop off the planet, South Korea would be hit hard with a huge loses. Samsung I am betting makes lots of products liek cheap stuff, that they make nearly nothing from, but those costs are absorb, by the fact they make lots of money in other things. I mean thing of phones they sell for $250, which probably cost them 1/2 that to make. Consider the S which now cost $300 to make, but sells for only $750 vs Apple who['s cost is $220 and sells for $650 to start. Consider how other products they sell are drastically overpriced and also consider all the licensing deals which are also overpriced. Example, to use Apple's license for making something as simple as a power adapter, Apple license fee is $15USD plus they get a percentage of the actual retail cost on certain items. Then Apple gets 30% of all app revenue, even though Apple put in zero time or money for them to exist. Its just to host them in their store. YEs Google does it too. But Google provides the Android SDK free to devs while Apple doesn't provide IOS for free. Again its greed over substance
posted on Jul 10, 2017, 9:58 AM 0
Posts: 538; Member since: Apr 16, 2014
Both the above comments are stupid and so will be many of the other comments that follow. Profit margins or sales figures do absolutely nothing for you as the phone buyer/user. Its like bragging about how many dollars the company ripped off you which is really stupid. As an end user who spends his hard earned bread on a phone, it hardly matters how much money a particular brand has or its sales figures. What can the phone do for me? Does it satisfy all my use cases? These are the only questions that decide. If a $250 phone by a $50,000 company satisfies my needs better or is better specced than a $1000 phone from a $250 billion company then to me that is undoubtedly a bigger phone. A person who brags about how his favorite company made an insane amount of profits by selling a phone at more than 5 times its making price is plain dumb because he is effectively bragging about being ripped off.
posted on Jul 10, 2017, 4:22 AM 1
Posts: 987; Member since: Jun 22, 2017
+1 It's really stupid of any non-sheer holder to be bragging about how much an organization makes. I just giggle whenever iFans bring that up as a reason of why iDevices are better, seems to happen pretty often on this site too.
posted on Jul 10, 2017, 8:47 PM 0
Posts: 1153; Member since: Feb 25, 2012
Imagine only 3 OEMs were running Android smartphones. Sammy would have been an unstoppable force.
posted on Jul 10, 2017, 5:04 AM 0
Posts: 2457; Member since: Apr 08, 2016
Er, no actually. It will only mean that the other two oems will sell more as opposed to now. But the bigger question should be "imagine google made android a closed sourced OS where would samsung be now?" They'd probably have been reduced to being a foxconn equivalent.
posted on Jul 10, 2017, 5:19 AM 0
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