Apple, Samsung Snag 99% of Mobile Phone Profits
May 4, 2012 11:53 AM
comment(s) - last by
Apple commands 73%, Samsung captures 26%
It's no secret that Samsung and Apple are dominating the smartphone market. According to
IDC's figures for Q1 2012
, Samsung had a 29.1 percent share of the worldwide smartphone market while Apple was not far behind with 24.2 percent.
With Samsung and Apple together commanding over 50 percent of the smartphone market, you would expect for them to take home a healthy portion of profits as well. While this is true, according to Asymco, the disparity between the profits reaped by Samsung and Apple compared with the also-rans in this sector is astonishing.
According to Asymco, the pair accounts for 99 percent of worldwide mobile phone operating profit. Samsung is using its nearly 30 percent share of the smartphone market to obtain 26 percent of the profits.
However, the biggest winner is Apple, which is pulling in an estimated 73 percent of the profits from the mobile market. Apple's performance shouldn't come as a surprise to many considering that the
company pulled in $11.6 billion in profits
during the first quarter (fiscal Q2).
HTC barely made a blip with just 1 percent of operating profits. LG,
, and Sony have all posted losses with regards to their respective mobile phone divisions, so they don't even factor into this equation.
Samsung Galaxy S III
"Seen this way, the story isn’t so much that Apple 'took the profits from the incumbents'", stated Horace Dediu of Asymco. "Rather, it’s that Apple created a vast new pool of profits. And one need not look far to find out where they came from: operators. These profits were mostly carrier premiums for the iPhone 4S."
This article is over a month old, voting and posting comments is disabled
5/4/2012 12:55:52 PM
Coming from the point of view of someone who is very happy with Android and wouldn't dream of purchasing an Apple product... Your comment is wrong across the board.
1) I'm not seeing where Samsung is taking away from Apple. Samsung is doing well, Apple is doing fantastic, and everyone else is losing money.
2) I don't think people are starting to open their eyes to "do what Apple says, or else". My observation is that a large portion of people are very happy to do what large corporations say, once they've invested time or money into that corporations products/services. Sad, but, I think, true.
3) If the situations with Apple's mobile profits changes, it'll be the carriers doing it. Even Apple's got to know at some level that the carriers do indeed like to make money off of the stuff they sell...
5/7/2012 3:16:42 PM
1) Yes. The total profits has grown significantly. Apple and Samsung have taken nearly all of that growth, while the others have taken almost none. Neither has really taken anything from the other.
2) No. It is not brand loyalty. It is resistance to change, once time and money have been spent learning a particular OS / user interface. LG and Motorola sell lots of Android phones, they just have very low or negative profit margins either because they cannot make them as cheaply as Samsung does, or more likely, they don't have as a sweet a deal with the major carriers.
3) If the premium for an iPhone has to be reduced to be competitive with lower priced Android phones, then yes, the carriers certainly won't eat all of the loss and not pass any on to Apple. Make no mistake. The carriers are in nearly full control of the market.
"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)
Motorola Bleeds More Cash as it Waits for Google to Save It
May 2, 2012, 2:02 PM
IDC: Apple and Samsung Steadily Climb as Nokia, HTC, and RIM Plummet
May 1, 2012, 2:53 PM
Apple Records Q2 Revenue of $39.2B; 35.1M iPhones, 11.8M iPads Sold
April 24, 2012, 4:30 PM
Nokia Bleeds Even More Sales Than Expected, Sales VP is Booted
April 19, 2012, 7:18 PM
RIM Sinks Further with $125M Fiscal Q4 Loss, Key Execs Leave
March 29, 2012, 9:14 PM
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM
Apple sued because of iPhone 6 Touch Disease
August 31, 2016, 7:00 AM
Get Ready to wait in line – iPhone 7 due September.
August 18, 2016, 7:15 AM
Most Popular Articles
Smartphone Screen Protectors – What To Look For
September 21, 2016, 9:33 AM
UN Meeting to Tackle Antimicrobial Resistance
September 21, 2016, 9:52 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Update: Problem-Free Galaxy Note7s CPSC Approved
September 22, 2016, 5:30 AM
Latest Blog Posts
Burlington Gun Attack
Sep 27, 2016, 5:00 AM
Who is in Risk of Getting Oral Cancer?
Sep 23, 2016, 6:02 AM
France Bans Plastic Eating Utensils in Restaurants
Sep 18, 2016, 10:49 AM
Progress Against Acute Myeloid Leukemia
Sep 17, 2016, 5:30 AM
Apple Watch Series 2 - Number 1 in the Customer Satisfaction.
Sep 7, 2016, 6:19 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information