Apple helps Samsung surge to record profits

“Samsung is powering toward record profits thanks in part to Apple’s new iPhones,” Sherisse Pham reports for CNN Business.The two tech companies compete aggressively in high-end smartphones, but Samsung also provides key parts for Apple’s devices.”

“The South Korean electronics maker said Friday it expects to pull in as much as 17.6 trillion won ($15.6 billion) in operating profit for the three months ended in September,” Pham reports. “That’s a jump of more than 20% from the same period a year earlier and Samsung’s highest quarterly earnings ever.”

“The bumper profit haul was likely driven by strong sales in memory chips and higher earnings in Samsung’s display and consumer electronics business, according to SK Kim, an analyst with investment bank Daiwa Capital Markets. The higher margins for flexible screens Samsung is supplying for the new range of iPhones helped boost earnings, Kim said,” Pham reports. “Business from Apple accounts for 25% to 30% of sales at Samsung’s display division, he added. The unit generated about 10% of the South Korean company’s 54 trillion won ($48 billion) profit last year.”

Read more in the full article here.

MacDailyNews Take: The quicker LG Display et al. get proficient at pumping out OLED in quantity with good yields, the better!

SEE ALSO:
Apple adds LG Display as second supplier of OLED displays – June 28, 2018
Apple struggles with effort to diversify display suppliers, can’t manage to cut dependence on rival Samsung’s screens – April 20, 2018

6 Comments

  1. samsung should stop making phones and just focus on screens for apple. I bet samsung makes more money off of each iPhone then they do buy selling their own phones. If they announced that android OS was inferior to iOS and that they no longer wanted to make a second rate product but instead wanted share in making a world class product with apple. Then iPhone sales would go through the roof.Thus making samsung more money. Of course I don’t know if this would actually play out but if i was samsung I would do the math

    1. You know its funny you say that. I was trying to figure out the other day if Samsung actually makes any money at all on phones? Do they make them because they are a form of advertising?

      https://www.cnet.com/news/samsung-q1-2018-earnings-revenue-soar-on-memory-chip-demand-but-mobile-will-struggle/

      “The reality is that the diversified Samsung conglomerate has massively reduced its dependency to smartphones — contrary to Apple,” Forrester analyst Frank Gillett said. “The main business driver is the component business with memory chips — and new opportunities related to software, connected devices and AI/IOT platforms.”

  2. Samsung makes a ton of sh*t. Apple contributes, but c’mon. Supply chains are international and intermingling. Well, until tariff boy shuts everything down because everything is so unfair to USA.

  3. Sumsungs profits are also bolstered by Google ads on websites, the profits from these google ads is used for subsidize Andriod OS. Without Andriod OS, samsung is nothing

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