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Samsung tipped its best-ever operating profit on Friday, with likely record earnings in the company's second quarter ending in June (via Reuters). The Apple rival predicted quarterly operating profit of 14 trillion won ($12.11 billion), a 72 percent jump from a year earlier. The estimate includes sales from the Galaxy S8 for the first time, but analysts pointed to Samsung's components business as the main driving force behind the latest projected figures.

Samsung has yet to provide a breakdown of its performance over the April-June period, with a full earnings report due later this month, but the South Korean company is known to have benefitted from higher prices for the memory chips it supplies that go into servers and smartphones. Samsung expects revenue to be up 18 percent year-over-year at 60 trillion won. Shortages for both DRAM and NAND chips are expected to persist for the rest of the year, increasing the likelihood that 2017 could represent Samsung's best-ever annual earnings.

samsung-800-new-800x269.jpg

Ironically, Samsung's continued success is expected to hinge increasingly on the performance of its biggest rival. Apple has reportedly turned to Samsung for more NAND chip supplies for its upcoming phones, since Samsung has relatively stable yield rates and has scaled up its output while other chip suppliers have lagged.

Samsung is also being helped by its sales of OLED panels, which are expected to become the go-to display standard over the coming years. Apple has reportedly signed a two-year contract with Samsung for the supply of up to 92 million curved OLED panels, as it attempts to ramp up capacity for this year's release of its high-end "iPhone 8", before transitioning fully to OLED displays for all its phones in the second half of 2018.

Samsung said on Tuesday it would invest $18.6 billion to extend its lead in memory chips and next-generation displays. Meanwhile, sales of the upcoming Galaxy Note 8 will be closely watched in the third quarter, after its predecessor was pulled from the market last year because of fire-prone batteries. Samsung is expected to unveil the handset in August.

Article Link: Samsung Predicts Best-Ever Profits in Last Quarter
 
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Relentless Power

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It's not just about phone sales for Samsung, as that's a separate entity. It's about the components they manufacture and supply to electronic manufacturers they contribute to. It's a big part in their operations.

That said, What I'm interested to see is The Note 8 debuting August. This is Samsungs year to rebound, which will be interesting to see how competes the 10th anniversary iPhone and what the Note 8 has to offer.
 
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prowlmedia

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Samsung phone division is completely separate to the components.

The phone division pay the same as any other manufacturer for parts and are subject to the same market forces and wait list. Zero preferential treatment. Sounds insane but more to do with anti-competition laws.

But the profits are bundled up into the Samsung group figures.
 

GrumpyMom

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Curved OLED panels? Er, exactly how curved? I'm hoping Apple is sensible and goes with a flat display.

As someone who has owned a Note 7, an S7 Edge, and now an S8+, I am so over curved displays. They are very pretty but not at all practical and introduce challenges for the manufacturer and issues for the end user that could so easily be avoided by going flat. I went with the S8+ in spite of its curved display, not because of.

I'd respect the design more if it did something novel with the look of the chassis and left the glass flat and functional.
 
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Winni

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Then Samsung appears to be doing something right!

It's a mega-corporation with MANY entirely different business units - from ships over heavy machinery, health care, home and industrial appliances DOWN to computers and phones. Yes, they make a lot of money with their phones. But it's not what defines the company as a whole. They have many viable businesses, so of course they're doing something right.
 

69Mustang

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In between a rock and a hard place
Samsung for the supply of up to 92 million curved OLED panels...
Can someone fix this? It should be flexible OLED panels, not curved.

Curved OLED panels? Er, exactly how curved? I'm hoping Apple is sensible and goes with a flat display.
I think they meant flexible OLED panels. Well, I hope they meant flexible OLED panels.:D

rant/
Tech sites need to be more specific with their use of certain terms. Sometimes they do more to confuse their readers than inform them. Curved display and curved glass panel are not the same thing, but I've seen them used interchangeably on several sites. The Galaxy S8 has a curved display. The iPhone 7 has a curved glass panel. Not the same thing.
rant over/

Not that it needs to said, but I'm sure you know that rant is not directed at you.:)
 
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conceptvbs123

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It's a mega-corporation with MANY entirely different business units - from ships over heavy machinery, health care, home and industrial appliances DOWN to computers and phones. Yes, they make a lot of money with their phones. But it's not what defines the company as a whole. They have many viable businesses, so of course they're doing something right.

Wrong. Read the source article from Reuters. It's Samsung Electronics Ltd , not Samsung Group. So its the electronics company only.

Iys official, this makes Samsung the most profitable tech company in the world. That's gotta hurt the fans here as many here stated that profit is the most important aspect for a company.
[doublepost=1499429769][/doublepost]
Samsung phone division is completely separate to the components.

The phone division pay the same as any other manufacturer for parts and are subject to the same market forces and wait list. Zero preferential treatment. Sounds insane but more to do with anti-competition laws.

But the profits are bundled up into the Samsung group figures.

Wrong. This is Samsung Electronics only. Read the source article from reuters.
 
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Iconoclysm

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Wrong. Read the source article from Reuters. It's Samsung Electronics Ltd , not Samsung Group. So its the electronics company only.

Iys official, this makes Samsung the most profitable tech company in the world. That's gotta hurt the fans here as many here stated that profit is the most important aspect for a company.
[doublepost=1499429769][/doublepost]

Wrong. This is Samsung Electronics only. Read the source article from reuters.

Who has ever said profit is the most important aspect for a company?

This is like one of those memes that says "People are outraged that...". Right. What people?

Anyway, if you want to have a pissing contest - that will make Samsung the most profitable this quarter and Apple the most profitable next.
 
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69Mustang

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Who has ever said profit is the most important aspect for a company?
That's a funny question on MR. There is a not insignificant contingent on this forum who subscribe to the theory that Apple's profit is the appropriate counter to any and every argument... regardless of the topic of discussion.
That group gets maniacally worked up over quarterly market share analysis. That group gets maniacally worked up if any competitor has any good news.

*in no way is this an implication about you* It's just an observation about that particular question on this particular forum.
 

BeforeTheMeds

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Jun 26, 2016
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Who has ever said profit is the most important aspect for a company?


Screaming about apple's profitd is a very common theme here when any other company is doing well and constantly held up to show how well apple is doing.

It also means Apple is doing something right as well as the new iPhone is spurring this growth.
So the iphone is selling androids? Bwahahaha.
 
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macdragonfl

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Jan 11, 2006
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Samsung make great displays and this is good Apple choose Samsung for the supplier of OLED display for next iPhone.
Yes, they do make great displays, but Apple really had no other choice. No other manufacturer could supply the volume needed for iPhones.
[doublepost=1499443869][/doublepost]
It's not just about phone sales for Samsung, as that's a separate entity. It's about the components they manufacture and supply to electronic manufacturers they contribute to. It's a big part in their operations.

That said, What I'm interested to see is The Note 8 debuting August. This is Samsungs year to rebound, which will be interesting to see how competes the 10th anniversary iPhone and what the Note 8 has to offer.

Agreed, I am happy that they are back on their feet. Competition is good for everyone, it puts the fire in innovation. Some think Samsung has to fail for Apple to win.
 
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Relentless Power

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Samsung make great displays and this is good Apple choose Samsung for the supplier of OLED display for next iPhone.

Yes, they do make great displays, but Apple really had no other choice. No other manufacturer could supply the volume needed for iPhones.

Exactly Macdragonfly. Who else could possibly meet the demand Apple will require for 92 million without sacrificing quality, which Samsung has. Apple wouldn't settle for some sub par manufacturer even if they could meet Apple's needs. It only makes logic for Apple to partner with Samsung, as their OLED displays are more mainstream Through manufacturing.
 

MrX8503

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Sep 19, 2010
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Cue the "Samsung is greedy" and "perhaps they should pay their slave laborers better in Korea, China and elsewhere" comments.

Oh wait, that's only happens in Apple threads. o_O

The slave laborers also get cancer.
 

tooltalk

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Jan 15, 2015
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Exactly Macdragonfly. Who else could possibly meet the demand Apple will require for 92 million without sacrificing quality, which Samsung has. Apple wouldn't settle for some sub par manufacturer even if they could meet Apple's needs. It only makes logic for Apple to partner with Samsung, as their OLED displays are more mainstream Through manufacturing.

Like Intel baseband?
 

Michael Scrip

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Mar 4, 2011
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this makes Samsung the most profitable tech company in the world.

That's gotta hurt the fans here as many here stated that profit is the most important aspect for a company.

That's almost as crazy as saying market share is the most important aspect for a company. :p

I gotta ask though... what is the "most important" thing?

Considering a company NEEDS profit to survive... I'd say it's fairly important.

Browse a list of defunct companies and ask their former CEOs how important profit is.

I bet Palm wishes they had remained profitable. Or any of the dozens of tech companies who either went out of business or were acquired and sold off for scrap.

Does anyone find it remarkable that Apple has been selling computers for over 40 years... while plenty of other computer companies have come and gone in less time than that?

Or how an 80-year-old company like Motorola... who pioneered the mobile phone... could be bought and sold twice in less than 5 years? In an era where the mobile phone is THE device everyone needs?

Profit is the reason companies stay in business. And lack of profit is the reason they don't.

So again... I'd say profit is fairly important. Dare I say the most important thing. :D
 
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mi7chy

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Oct 24, 2014
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More impressive is that Samsung is not only the most profitable with the highest quality but that they also manufacture a lot of the core components in the West from the Austin Texas fab unlike Apple which is a front for everything made offshore.
 

blkjedi954

macrumors regular
Feb 15, 2012
152
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Florida
It's a mega-corporation with MANY entirely different business units - from ships over heavy machinery, health care, home and industrial appliances DOWN to computers and phones. Yes, they make a lot of money with their phones. But it's not what defines the company as a whole. They have many viable businesses, so of course they're doing something right.
Accept for those washer machines that literally shake apart in a hail of bolts and shrapnel. They aren't doing something right more than just having access to slave labor and flooding US market with under priced appliances etc driving its competitors out of business and then raising their prices. They have been sued soooo many times for this and currently have many open cases still awaiting litigation. So I wouldn't be touting their genius more than their mob style/anti-compete tactics. Read a little people!!!
 
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