Samsung To Report Monster Profit, Bigger Than Facebook, Amazon, Netflix & Google Combined
Much to the angst of people who tried to tarnish their brand over the Note 7 debacle, Samsung has hit back where it hurts with the biggest quarter profit ever made by any listed Company.
Not only is Samsung Electronics’ second quarter operating profit projected to be higher than operating profits from arch rival Apple, it’s set to be bigger than the combined operating profits from FANG which stands for (Facebook, Amazon, Netflix, Google).
Total of operating profits from FANG is tipped to be US$11.152 billion.
Because FANG is also tipped to rise it’s estimated that they will be like operating profit from Samsung Electronics.
According to several analysts Samsung Electronics’ second quarter operating profit is tipped to be a staggering A$15.6 billion.
One observer said, “Because estimation of its performance is continuing to rise and as the quarter is not yet over there is a higher possibility that their final operating profit will be higher than current estimations”.
Some are tipping over A$17 Billion.
As an example of the size of Samsung’s profit Intel is projected to make about $3.89 billion in operating profit for the second quarter.
More than US$6.16 billion is set to come from Samsung’s semiconductor business.
Globally Companies such as Exxon Mobil and Sinopec, which are global companies that rank in the top operating profit organisations, are not going to make more than $8.80 billion in operating profits during second quarter.
Samsung Electronics’ second quarter has been affected by a boom in demand for semiconductors.
More than 50% of their entire operating profit will come from semiconductor business due to increase in supplies of DRAMs and NAND memories and a rise in average sales prices.
Samsung Electronics consumer performance is also looking good.
Their display business is growing along with their Smartphone and home appliance businesses.
Samsung said that they planning to make more than A$58 billion in operating profit for the first time this year.
They claim that the positive trends in semiconductor and display markets will continue until next year.
On the downside, there is every possibility that Samsung Electronics will have to give up its top place in the smartphone market to Apple during second half of this year when Apple releases its new iPhone due in part to problems associated with the Note 7 batteries.
It is expected that they will compete for the top place during third quarter depending on the release date of the new Apple iPhone.