Apple & Samsung: Similar Gross Profit, Different Net Operating Income
The similarities between Apple Inc. and Samsung Electronics Co in terms of gross profit figures are clear. Both firms reported a staggering $20 billion in gross profit in 2017, echoing the success of their respective mobile and technology divisions. Despite the striking similarity, the result in terms of net operating income was dramatically different. While Apple Inc. reported a net operating income of $48.4 billion at the end of fiscal 2017, Samsung reported only $18.4 billion – a clear indication of the impact that different cost structures and foreign exchange markets can have on a company’s ability to turn profits. Though the two companies may occupy the same industry, their paths to profitability are vastly different.
