“Samsung could soon unseat its biggest rival as the tech world’s biggest money making machine,” Sherisse Pham reports for CNN. “The company reported bumper quarterly earnings on Thursday, putting Samsung on track to record a higher operating profit for the period than Apple. Samsung pulled in 61 trillion won ($54.8 billion) in revenue and 14 trillion won ($12.6 billion) in profit for the three months ending June 31.”
“Apple will release its earnings for the same period next week. Analysts expect the iPhone maker to report revenue of $44.9 billion and an operating profit of $10.5 billion, according to Reuters and Bloomberg data,” Pham reports. “It was bumper demand for memory chips that drove [Samsung]’s earnings to new heights. The chips unit posted 8 trillion won ($7.2 billion) in operating profit, or nearly half the group’s total.”
“Samsung will see ‘a meaningful revenue increase’ thanks to the supply of display panels ‘to a major smartphone customer’ in the next three months, Daiwa Capital Markets analyst SK Kim wrote in an investors note,” Pham reports. “That major customer is likely Apple, which has reportedly ordered tens of millions of Samsung display panels for its upcoming iPhone.”
Read more in the full article here.
MacDailyNews Take: As we wrote half a decade ago:
You want to know what’s really unbelievable? That, after half a decade, at least, of Samsung’s slavish copying, Apple continues to do billions of dollars of business with Samsung. Apple, which has enough money to build or bankroll anything they want, like a chip fab, or a touch screen display factory, or anything they could ever need.
Something just does not compute here. If you get mugged, do you buy the leather for a new wallet from your mugger while pressing charges? If you’re Tim Cook, you do.
Apple could have – and should have – dropped Samsung like a bad habit years ago. Not one red cent should be going from Apple to Samsung today. It’s a travesty. It’s poor planning. And it’s bad business. The only conclusion we can draw is that Tim Cook, operations genius, boxed Apple in and is now stuck; beholden to a den of thieves. That sort of “decision making” doesn’t bode well for Apple’s future. It really doesn’t.
Apple turns to Samsung for more 3D NAND chip supplies for upcoming iPhones – July 6, 2017