For the first time, Samsung set to beat Apple in operating profits – It has been a tough year for the Korean giant, thanks to the failed Galaxy Note 7 and its chief facing embezzlement charges
Samsung is all set to beat arch-rival Apple in operating profits for the first time since the two companies became the world’s largest mobile phone manufacturers.
As per reports by UK daily The Telegraph, the Korean electronics giant said that its operating profits in the second quarter of the year had hit a record 14 trillion won (Rs 7,839 crore approx).
Despite the botched Galaxy Note 7 phone, and its chief serving a jail term for embezzlement, Samsung bounced back, thanks to the well-received S8 phone, supported by a huge marketing blitz, driving sales.
Unlike Apple, Samsung’s majority profits come from is display and microchip division, with demands for electronics and computer servers surging. Apple on the other hand makes a majority of its profits from cell phones.
Apple is not due to report results for the same period until next month but analysts expect operating profits of $10.5bn (£8.1bn), a slight increase on last year as iPhone growth slows down.
Samsung’s corporate reputation has taken a battering in recent months. The wider Samsung group, an empire that includes property, finance and healthcare companies, has been at the centre of a corruption scandal linked to Korea’s recently-impeached president and its heir apparent Jay Y Lee has been charged with bribery and embezzlement.