[THE INVESTOR] Korean tech giant Samsung Electronics is expected to beat its archrival Apple in terms of operating profit during the April-June period to become the most profitable tech company in the world.
The Korean tech firm said in its earnings preview on July 7 that it is estimated to have earned 14 trillion won (US$12.1 billion) in operating profit. The figure, up 71.99 percent on year, accounts for 23.3 percent of the quarterly revenue of 60 trillion won. The operating margin is the highest in the non-financial sector.
“A super cycle was expected for Samsung’s semiconductor and display businesses, but it has turned out to be an ultra-super cycle for the memory chip business,” Cheong Chang-won, a research head of Nomura Securities, referring to the soaring prices and increased demand of the DRAM and NAND memory chips.
Thanks to such booming sales, Samsung’s quarterly profit will likely--for the first time--surpass that of Apple, which is expected to stand at 12.3 trillion won.
In the chip segment, Samsung is estimated to have generated 17.5 trillion won in sales, compared to the 16.5-trillion won sales estimate of US semiconductor powerhouse Intel.
The Korean tech giant is estimated to have earned more than half of the 14 trillion won operating profit from the semiconductor business while its mobile, display panel, and consumer electronics businesses are forecast to have earned 4 trillion won, 1.5 trillion won and 800 billion won, respectively.
By Kim Young-won (firstname.lastname@example.org)