Samsung Knocks Apple Off Profit Top Spot

Samsung Knocks Apple Off Profit Top Spot
Samsung's sales of components to Apple will ensure that the Korean company makes record profits.

(CCM) — Samsung may overtake Apple as the world's most profitable company this quarter, thanks to a boom in sales of iPhone components, according to a Business Insider report. Samsung is expected to announce profits up 72% to $12.1 billion, while Apple is expected to make $10.52 billion.

Samsung is Apple's biggest rival in the smartphone market with its Galaxy S8 Android device, but Samsung makes more money by selling components such as screens and memory chips to Apple and other manufacturers, the report points out. Until an LG Display fabrication plant is completed, Samsung is the only maker of OLED screens which will be used in Apple's iPhone 8. It is expected that all future iPhones will used OLED screens, rather than the less complex LCD screens used in the past.

The iPhone 8 is expected to be a huge seller, and Apple has likely already purchased many components if, as expected, it hopes to launch the new handset in September 2017. This may well explain why Samsung has enjoyed such a profitable quarter.

Samsung is likely to remain highly profitable for the forseeable future because of the high price of the DRAM and NAND chips it makes, caused by high demand for these components from the smartphone market and limited supply growth.

Image: © Kobby Dagan -