Samsung Topples Apple As World’s Biggest Phone Maker
This one was long in coming.
After beating Apple to become the world’s most profitable company, the South Korean electronics giant, Samsung has emerged as the world’s largest maker of mobile phones.
It also beats the iPhone maker as the largest memory chips manufacturer and most profitable technology firm, going by its quarterly earnings released on Thursday.
Samsung said huge sales of its new Galaxy S8 smartphone and demand for its memory chips are behind the jump in April-June and predicted another blockbuster report for the current quarter to September.
It said operating profit soared a forecast-beating 72.9% from the previous year to 14.07 trillion won ($12.6 billion), compared with consensus forecasts of $10.6 billion for US titan Apple, which is due to report next week.
“Samsung has surpassed its rivals for now but Apple usually sees little fluctuation in its profits whereas Samsung’s profits fluctuate largely on memory chip prices,” said, Greg Roh, an analyst at HMC Investment Securities, who spoke with AFP.
Samsung also said net profit surged almost 90% to 11.05 trillion won, its best quarterly result in five years.
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“The S8 has indeed helped get Samsung back onto its feet, hopefully putting the Note7 debacle behind it,” Bryan Ma, a technology industry analyst at IDC, said before the announcement.
“But we also have to keep in mind that a lot of Samsung’s momentum is from memory and displays too, so it’s not all about the S8, either,” he said, according to Bloomberg News.