Samsung Leads Over Apple in Sales: A Better Investment?

Samsung Outperforms Apple in Global Smartphone Market

In Q1 2024, Samsung Electronics (KS:005930) took the lead over Apple (NASDAQ:AAPL) to become the world’s top smartphone seller, as reported by IDC. Apple’s iPhone shipments declined nearly 10% year-on-year.

Despite a 7.8% growth in global smartphone shipments, totaling 289.4 million units, Samsung surged ahead with 60.1 million units sold, capturing a 20.8% market share. In contrast, Apple sold 50.1 million iPhones, holding a 17.3% market share.

Chinese brands like Xiaomi and Huawei also saw increases, with Xiaomi securing the third spot with a 14.1% market share.

Samsung Gains from U.S. Chips Act

The U.S. Department of Commerce recently announced that under the Biden administration’s Chips and Science Act of 2022, Samsung would receive up to $6.4 billion to expand its semiconductor production in Texas. This initiative aims to bolster U.S. chip manufacturing and reduce dependence on Asian suppliers.

Samsung is expected to invest about $45 billion in its Texas facilities by 2030, which should enhance job creation and economic growth in the U.S., while also boosting Samsung’s semiconductor segment.

In early April, Samsung projected a significant increase in its first-quarter operating profit for 2024, expecting a rise of 931.3% to 6.6 trillion won ($4.77 billion), driven by high demand and rising chip prices.

Samsung’s Stock Performance Indicates Market Confidence

Samsung’s stock has shown remarkable resilience, with a notable 11% increase from its January low, in contrast to Apple’s 15% fall since December. Over the last year, Samsung’s market value on the Korean Stock Exchange has grown by 21.44%, reaching about $385 billion.

Analysts are optimistic, predicting a 28.65% rise in Samsung’s stock price over the next 12 months, with an average target price of 101,505 Korean won per share ($73.40).

Upcoming Financial Report to Shed Light on Samsung’s Prospects

On April 30, Samsung will disclose its Q1 2024 financial results. Investors are keen to see if Samsung can sustain its stock market momentum following its leadership in smartphone sales and whether the chip sector’s growth will further propel its stock value.