Cheers, Apple! Samsung set for record profits with help from new iPhone models

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The Samsung logo.

  • Samsung has announced it expects to have made record-breaking profits in the third quarter of 2018.
  • The company anticipates operating profits of 17.5 trillion won and consolidated sales of 65 trillion won.
  • The new iPhone lineup is thought to have given a profit boost to Samsung Display.

Samsung Electronics released its earnings guidance for the third quarter of 2018 and said it expects to post record profits. According to Samsung, consolidated sales during the quarter are estimated to have been 65 trillion won (~$57.5 billion). Meanwhile, operating profit for the quarter is thought to be 17.5 trillion won (~$15 billion).

This is a significant increase over quarter two when the company ended a record-breaking run with 14.8 trillion won (~$13 billion) in profits.

While the company did not break down its earnings, chips are almost certain to have made up the majority of the company's success. We don't know how its smartphone business performed. However, earlier in the year, the company said it expected to see a decrease in the profitability of its mobile unit due to increased marketing costs and competition from other brands.

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Samsung Display is thought to have seen a huge jump in profitability. This is likely due to Samsung's alleged role in providing OLED displays for both the iPhone XS and the iPhone XS Max.

According to The Bell, estimated earnings for Samsung Display in the third quarter stand at 870 billion won (~$770 million); significantly more than the total of 543 billion won (~$481 million) that the company made in the entire first half of the year. It's not all good news for Samsung Display, though; this quarter's profits are still lower than the same period last year.

Samsung will release its full quarterly report at the end of the month. When it does, we should get a better idea of how its smartphones have done this quarter, as well as its predictions for the future.

Next up: Samsung planning four versions of the Galaxy S10, teardown suggests



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