Apple Displaced By Samsung As The World's Most Profitable Tech Company
Apple is likely to be eclipsed by its global nemesis, Korea-based Samsung Electronics in terms of profitability, according to the Wall Street Journal.
Samsung expects to report operating profits of $12.1 billion, when converted into U.S. currency, for the quarter that ended in June. This would represent a 72% increase from the same quarter in 2016, the Journal says.
Meanwhile, analysts estimate that Apple will report operating profits of $10.6 billion for its most recent quarter, according to S&P Global Market Intelligence, as cited by the Journal.
Apple is due to issue its earnings release in early August. This would be the first time that Samsung would beat Apple in quarterly profits, according to CNBC.
About 60% of Samsung's operating profits come from sale of memory chips, this is according to research from Morgan Stanley.
Interestingly, about 5% of Samsung's operating profit comes from memory chips sold to Apple, according to research by Credit Suisse Group.
Samsung is the global leader in semiconductor sales, and its operating profit from this division for the second quarter is expected to be nearly 91% of its full year profit in 2014 from this same product line, according to an Associated Press report in USA Today.
According to the report, Samsung has advanced memory chip production technology that is years ahead of rivals.
Since 2011, Samsung has been the global leader in the number of smartphones sold. In 2016, Samsung's Galaxy series of smartphones enjoyed sales of nearly 45% more units than Apple's iPhone.