Apple is making Samsung rich - Business Insider
![]() Samsung Electronics on Friday forecasted record profit andsharply increased revenue in an earnings-guidance release. Samsung expects its operating profit to increase by 72%, to $12.1billion, and revenue to rise by 18%, to about $52 billion. Those are strong results -- and it looks like they're coming fromSamsung's top smartphone rival, Apple, analysts told Reuters. Samsung is best known as a brand that sells phones like theGalaxy S8. But its most profitable division sells parts, likescreens and memory chips, to companies including Apple. In fact, Samsung is reported to be the only supplier of the newnext-generation OLED screen expected to be a key sellingpoint of the iPhone 8. ![]() Wall Street analysts expect Apple's iPhone 8 to be a salesmonster, with a new design and a backlog of loyal customerswaiting to upgrade spurring a "supercycle" of sales. If Appleplans to launch the iPhone in September, it's probably alreadytaking shipments of parts from its suppliers, including Samsung. "Final June sales for our Apple Monitor rose by 18%month-over-month and well above the average decline of 2% overthe past twelve years. This compares to the five-year averagedecrease of 7% and a 2% increase in June 2016," Brian White, ananalyst at Drexel Hamilton, wrote in a note looking at Apple'ssuppliers, which he calls the "Apple Monitor." "We believe the initial ramp of certain components for the newiPhones this fall, combined with recently launched Macs and iPadPros, contributed to this performance," he continued. Samsung's operating profit this quarter may even top Apple's forthe first time. Analysts estimate Apple's operating profit thisquarter at $10.5 billion, according to Bloomberg data. So even though Samsung's vice chairman and heir apparent, LeeJae-yong, is on trial over allegations he was yoga bra part of a corruptionscheme, the company continues to deliver huge results. Samsung will announce its earnings at the end of the month.Apple's earnings report is scheduled for August 1. SEE ALSO: Here's what Apple could be planning after the iPhone 8 NOW WATCH: Here are 7 iPhone tricks you may not know aboutLoading video...
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