Tomahawk, WI 8/05/2013 (Basicsmedia) – It has been reported through many outlets that there is a battle pitting Apple Inc. (NASDAQ:AAPL) on one side, and Samsung on the other. It’s now very difficult to tell which side will emerge victorious at the end of everything. To some people, this battle is rather obvious while to others, the battle is only assumed but not an actual thing. Certain reports indicate that Samsung is now producing the world’s best Smartphone thus leading to the reference of the company as being the most profitable in the entire world. If it is true that there is a vicious battle going on between the two, it is good to examine if this can affect investors and their shares.

AAPL biggest percentage of operating income is derived from selling iPads, and iPhones. On the other hand, Samsung obtains the largest part of its operating income from IT and mobile gadgets. Samsung also appears to gain a lot from selling consumer electronics. AAPL obtains huge sums of money as operating income through the product lines and this amount is in the region of between $10,000m-$20,000m. This is much higher than Samsung whose operating income is mostly around the $10,000m. If Samsung is more profitable than AAPL, then this is due to the fact that it sells more than the latter.

Is AAPL Doomed in its Fight with Samsung?

For the most part, you will keep hearing reports indicating that AAPL is now trailing Samsung in terms of making profits. This piece of news has led many people to undertake research with the aim of uncovering if there is any truth to this, or it’s all a fabrication. Depending on who you talk to, you are likely to receive different answers probably because such types of battles are usually left to personal conjecture. This could be because people are, perhaps, biased towards one of the two brands hence the inability to dish out conclusive findings as to whether this is something which is actually true or not.

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This figure shows how AAPL and Samsung compare with each other.

It is courtesy of http://tech.fortune.cnn.com/2013/08/04/apple-samsung-bottom-line/?source=yahoo_quote.

One of the reasons as to why there are many people who doubt the report circulating around indicating that Samsung has overtaken AAPL and is now the biggest profit maker, is because most of the data being bandied around hasn’t been officially acknowledged by either firms. Whereas AAPL reports how much of specific products it has sold, Samsung doesn’t do the same. Samsung keeps quite on such matters and this is what has convinced many analysts that this claim doesn’t hold much water. I believe that such a claim has been probably fabricated with the intention of achieving certain goals which are as yet unknown.

AAPL is not performing as badly as it is being reported. It is perhaps difficult to make conclusions as to whether it is not as profitable as Samsung. This is something which requires a lot of research. Thus far, I have no reason to doubt whether AAPL is still the most profitable in comparison to its competitors. It is only by analyzing the minute details and other important factors about AAPL and Samsung that I would be in a place to state categorically that one is ahead and better than the other one in profit making. Until then, I would advice investors to disregard such information, since AAPL is still a profitable company.

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