SAMSUNG ELECTRONIC KRW5000 (OTCMKTS:SSNLF) expects its second quarter profit to increase by 72% an achievement that will make it the most profitable tech company. The Korean company says it expects profits of $12.1 billion compared to Apple Inc. (NASDAQ:AAPL)’s expected profit of $10.6 billion.
Samsung Q2 Outlook
The South Korean company says it expects second-quarter consolidate sales to be about 60 trillion won representing 17.78% year over year growth. Rising prices for memory chips in the second quarter, as well as Galaxy S8 sales, is seen as a key driver of the company’s earnings.
Profits of $12.1 billion will cap a remarkable comeback from the Note 7 fiasco that affected sales last year. It will also mark the first time that the tech giant has beaten Apple when it comes to quarterly profits for the first time in three years.
The figures underscore Samsung growth metrics having posted two consecutive quarters of positive results. The two-quarter saw the company post its biggest profits in more than three years. Apple has not had the best of rides in recent quarter’s iPhone sales having clocked saturations levels.
Stiff competition and emergence of affordable phones packing high-end features has made it impossible for the tech giant to ship more products as was in the past. The iPhone maker is now hoping that its upcoming flagship device slated for September will overturn a poor run of sales.
Samsung Booming Chip Business
Booming semiconductor business remains a key driver of the company’s earnings. Samsung has in the recent past started to reduce its reliance on smartphone sales competition in the space having clocked record highs.
Investments in the chips business are already paying out as Samsung is now on course to overtake Intel when it comes to memory chips. The company has already confirmed plans to invest $18 billion on chips as it continues to explore new ways of strengthening its position in the business.
Everything about Samsung’s core businesses should become clear when it reports its second-quarter earnings at the end of the month.
Samsung stock was up by 4% in Friday’s trading session to end the week at $2,080 a share.