Samsung may profit more from sales of new iPhones than from its own handsets
We all know that Samsung is not having the performance the company expected in sales of its smartphones: while the Galaxy S9 numbers were disastrous, falling even down from the Galaxy S6 , the forecast for the mighty Galaxy Note 9 were also not of the best, with sales almost equal to the previous model.
In contrast, reports indicate that Apple continues to grow with sales of the new iPhone XS and XS Max , which already surpasses the sales of the generation of 2017 , and it may be thanks to its competitor that Samsung has a higher profit in 2018.
While Samsung posted a 22 percent loss in its revenue in the second quarter of the year (April and June 2018), Apple said in a report that it achieved 17 percent growth over the same period, reinforcing that the company is not as bad as many imagine .
As a result, third-quarter growth is expected to show even greater growth in Apple as new iPhones models and higher-than-first-generation sales are launched, meanwhile Samsung would be following the low profit from its own smartphones.
It would be this problem that would lead the South Korean giant to restructure its entire smartphone division in 2019 by launching the Galaxy S10 in three variants, terminating the Galaxy J line (or breaking it down into several other letters of the alphabet) forced mainly by its competitors to launch a folding smartphone next year.
But while all this is not taking place, it seems that Samsung's main profit for the third quarter and probably fourth quarter of the year will come from Apple: with the growth in sales of smartphones that have OLED screens produced by South Korea , percentage of sales of new iPhone XS and XS Max would be converted to Samsung.
And Apple's 17% growth in the second quarter is expected to be even higher between July and September this year. But other than Apple, another profit factor for Samsung would be its partnerships with other companies thanks to the provision of OLED screens, but it seems that such a market may be threatened by two major competitors: LG and BOE.
The companies' quarterly report (both Apple, Samsung and Huawei, LG, Sony and many others) should be published in the coming days and we will know what is working and what is going wrong for businesses. Will it be if Samsung really will once again be on the red alert threshold or would it be saved by Apple?
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