Samsung Now More Profitable Than Apple, but Not Because of Smartphones
Is Apple no longer the most profitable technology company in the world?
Currently, no. Samsung has posted more profit than Apple two quarters in a row now, the most recent quarter being $7.5 billion (Apple) versus $7.6 billion (Samsung).
Interestingly it’s not because of Android smartphone sales; rather, the profits are largely due to a revival of its semiconductor business, as well as improved sales of memory chips for phones, servers and game consoles. Its smartphone business, financially, is actually is significantly worse shape than Apple’s, whose mobile division is extraordinarily profitable.
It’s also worth noting that while Samsung is currently more profitable, Apple remains a much larger company overall. Samsung is valued at less than $200 billion, while Apple is the world’s most valuable technology company with a market cap of nearly $500 billion.
Apple last week released its quarterly earnings report, posting revenue of more than $37 billion, and forecasting $55 billion in revenue durng the next quarter.
