Why Is Apple Slowing, And Samsung Sprinting?
For so long #Samsung looked like it was the struggling competitor in the smartphone war against #Apple. Now the tables are turning.
Thursday saw a surprisingly upbeat financial update from Samsung, after its smartphone business shrank last year thanks in part to stronger competition from Apple. Now the South Korean electronics giant says it will report its best-operating profit in two years (about $7 billion) in late July, putting it ahead of the already-positive forecasts from financial analysts, who are expected earnings of approximately $6.8 billion.
Samsung won’t break down revenue till it releases official results later this month, but smartphone sales are almost certainly driving those profits, in particular, sales of the well-regarded Galaxy S7 and S7 Edge. And helping to drive that? Samsung’s bet that consumers are getting excited about virtual reality, by bundling its Gear VR headset with the phones’ pre-orders. It went on to repeat the bundling after launch.