STREAMING NOW: Watch Now

Apple helps Samsung surge to record profits

Samsung is powering toward record profits thanks in part to ...

Posted: Oct 5, 2018 11:23 AM
Updated: Oct 5, 2018 11:23 AM

Samsung is powering toward record profits thanks in part to Apple's new iPhones.

The two tech companies compete aggressively in high-end smartphones, but Samsung also provides key parts for Apple's (AAPL) devices.

Apple Inc

Companies

Samsung Group

Business and industry sectors

Business, economy and trade

Company activities and management

Company earnings

Consumer electronics

Consumer products

Financial performance and reports

Financial results

Electronics

Technology

Mobile and cellular telephones

Mobile technology

Smartphones

Banking, finance and investments

Financial markets and investing

Securities trading

Stock markets

The South Korean electronics maker said Friday it expects to pull in as much as 17.6 trillion won ($15.6 billion) in operating profit for the three months ended in September. That's a jump of more than 20% from the same period a year earlier and Samsung's highest quarterly earnings ever.

The company didn't provide a detailed breakdown of results yet, but analysts are ready to fill in the blanks. The bumper profit haul was likely driven by strong sales in memory chips and higher earnings in Samsung's display and consumer electronics business, according to SK Kim, an analyst with investment bank Daiwa Capital Markets.

The higher margins for flexible screens Samsung is supplying for the new range of iPhones helped boost earnings, Kim said.

Business from Apple accounts for 25% to 30% of sales at Samsung's display division, he added. The unit generated about 10% of the South Korean company's 54 trillion won ($48 billion) profit last year.

There are doubts about how long Samsung's profits can keep hitting new highs.

Analysts have been warning about slowing demand and a subsequent drop in prices for some memory chips, the business that drove a year-long streak of record profits at Samsung.

And despite the blockbuster earnings Samsung forecast Friday, analysts expect the company to report disappointing smartphone sales for the third quarter, despite the release of a new flagship device, the Galaxy Note 9, in August.

Samsung, the world's largest smartphone maker, is suffering "a slowdown in many markets" compared with the same quarter last year, said TuanAnh Nguyen, an analyst at research firm Canalys.

Competition from Apple and Huawei's new flagship phones mean Samsung faces "tremendous challenges to remain strong" in the high-end market, he added.

Samsung will report full results at the end of this month.

Beyond smartphones and memory chips, another reason Samsung's earnings were so hot last quarter was because South Korea was so hot — literally.

A sweltering summer in the country fueled an increase in air-conditioner sales for Samsung's consumer electronics division, according to Kim.

Samsung shares closed flat in Seoul on Friday. The stock has fallen about 12% so far this year, weighed down by concerns about future demand for memory chips.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 259117

Reported Deaths: 5668
CountyCasesDeaths
DeSoto17436187
Hinds16524328
Harrison13876199
Rankin11000217
Jackson10652187
Lee8981141
Madison8413168
Jones6552112
Forrest6101121
Lauderdale6034189
Lowndes5463119
Lafayette507393
Lamar496465
Washington4877124
Bolivar4068109
Oktibbeha401681
Panola378380
Pontotoc372155
Monroe3628105
Warren3619101
Union350563
Marshall349569
Neshoba3433152
Pearl River3380104
Leflore3079108
Lincoln300687
Sunflower289272
Hancock285360
Tate276762
Alcorn268854
Pike266580
Itawamba266261
Scott253448
Yazoo250156
Prentiss249552
Tippah245850
Copiah244549
Coahoma243654
Simpson240069
Leake234367
Grenada221171
Marion218473
Covington216972
Adams210170
Wayne206432
Winston205267
George202739
Attala195761
Newton195745
Tishomingo192461
Chickasaw186144
Jasper176038
Holmes169868
Clay162735
Tallahatchie154935
Stone148424
Clarke143562
Calhoun138021
Smith125825
Yalobusha120234
Walthall113437
Greene112129
Noxubee111425
Montgomery110936
Carroll105922
Lawrence104317
Perry103231
Amite99926
Webster94324
Tunica87621
Jefferson Davis87327
Claiborne86825
Benton84023
Humphreys83624
Kemper79120
Quitman7029
Franklin68716
Choctaw62313
Wilkinson58825
Jefferson55920
Sharkey44217
Issaquena1606
Unassigned00

Alabama Coronavirus Cases

Cases: 432536

Reported Deaths: 6379
CountyCasesDeaths
Jefferson63523957
Mobile30967562
Madison27627201
Tuscaloosa21122268
Montgomery19495326
Shelby18941126
Baldwin16798188
Lee12901102
Morgan12447129
Etowah11911178
Calhoun11365205
Marshall10322119
Houston8813156
Limestone823176
Cullman8159106
Elmore8056104
DeKalb7796102
Lauderdale773399
St. Clair7705122
Talladega6347109
Walker5993174
Jackson590341
Colbert543274
Blount541186
Autauga527061
Coffee454160
Dale405482
Franklin371948
Russell345712
Chilton340972
Covington334168
Escambia328344
Dallas310196
Chambers297370
Clarke290536
Tallapoosa2665107
Pike258830
Marion250155
Lawrence249150
Winston231442
Bibb219848
Geneva206946
Marengo205229
Pickens198631
Hale180842
Barbour177836
Fayette174528
Butler171358
Cherokee162530
Henry157523
Monroe150718
Randolph143236
Washington139527
Clay128546
Crenshaw121644
Cleburne119724
Lamar119621
Macon119637
Lowndes112536
Wilcox105822
Bullock101428
Perry99118
Conecuh96320
Sumter89726
Greene76723
Coosa62215
Choctaw51624
Out of AL00
Unassigned00
Tupelo
Clear
58° wxIcon
Hi: 57° Lo: 45°
Feels Like: 58°
Columbus
Mostly Cloudy
54° wxIcon
Hi: 55° Lo: 48°
Feels Like: 54°
Oxford
Clear
54° wxIcon
Hi: 55° Lo: 42°
Feels Like: 54°
Starkville
Mostly Cloudy
52° wxIcon
Hi: 54° Lo: 47°
Feels Like: 52°
WTVA Radar
WTVA Temperatures
WTVA Severe Weather