According to its quarterly earnings filed yesterday, South Korean technology giant Samsung is on a course to overtake Apple as the richest tech company in the world.
Samsung claims that huge sales of its latest Galaxy S8 smartphone, as well as high demand for its smartphone chips, are the reason it experienced a massive revenue jump in the April to June quarter. The company also predicts a repeat performance in the current quarter.
Samsung’s operating profits have climbed a whopping 72.9 percent over last year’s number to hit $12.6 billion, compared with predictions of $10.6 billion from US-based Apple. However, things may not be as simple as that.
Analysts also point out that, impressive as Samsung’s gains this year may be, that’s not a constant factor. Even at what could be called a peak in their profit margins, the company is only $2 billion ahead of Apple’s comparatively stable profits. In addition, Samsung’s momentum is not just from the Galaxy S8, but from memory chips and displays too. That margin is likely to go down fast once Apple has a new smartphone of its own to announce.
Samsung has been battling hard this past year to overcome multiple hurdles. Not only did it receive a blow from the ill-fated exploding Galaxy Note 7, it’s also suffered a major scandal in the form of vice-chairman and heir Lee Jae-Yong implicated in corruption charges that brought down South Korean president Park Geun-Hye.