Samsung Electronics has announced that it expects its quarterly profits to be 14 trillion Korean Won or $12.1 billion.
The company has reported that its profits for this quarter are 72 percent higher than they were at the same time this year. If accurate, this would allow Samsung to replace Apple as the most profitable tech company in the world. For its part, Apple is expected to post quarterly profits of $10.6 billion. This would mark the first time in three years that Samsung has posted higher profits than Apple.
Samsung’s Comeback Story
Last year was a disastrous year for Samsung. The fiasco surrounding the exploding Galaxy Note 7 sent the company’s reputation into a downward spiral that could have jeopardized the launch of the Galaxy S8. Fortunately for Samsung, the S8 is simply such a good phone that many people were willing to overlook the Note 7. While we don’t know the specifics of the S8’s sales numbers, we do know that the company sold more than 5 million units in the phone’s first month on the market.
In addition to the S8, Samsung is currently preparing for the launch of the Galaxy Note 8 which is expected to arrive a few months before the iPhone 8. The Note 8 is expected to offer many of the same features as the S8, in addition to stylus support. Samsung has also said that the Note 8’s stylus will feature some improvements over the Note 7’s. Of course, the Note 8’s biggest improvement is that it, hopefully, won’t explode.
Can Samsung Stay On Top?
A large part of Samsung’s recent success has come from the strong sales of the S8. It is widely considered to be the best smartphone on the market, but Apple’s iPhone 8 is already generating a lot of hype. It remains to be seen whether or not it will be better than the S8, but it is sure to sell well. Even if the phone were to be received somewhat poorly — which we doubt will happen — Apple has a very loyal fan base that is eager to get their hands on the latest iPhone.
It remains to be seen whether or not Samsung will remain on top, but, ultimately, it doesn’t really matter. Both of these companies generate massive profits and aren’t going anywhere anytime soon so their fans have little to worry about besides bragging rights.