backtop


Print 50 comment(s) - last by JKflipflop98.. on May 13 at 12:53 PM

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.
 

[Source: Asymco]

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, Motorola, Nokia, RIM, 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."

Source: Asymco



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: Mick!
By Tony Swash on 5/4/2012 2:39:52 PM , Rating: -1
quote:
2. Apple is recordly profitable. Granted that profitability is heavily driven by: i. Exploitive labor contracts, which are rumored to be far worse than the industry average. ii. One of the most abusive records when it comes to exploiting loopholes for the purposes of tax evasion. iii. Nickel and diming customers with massive markups for things like extra RAM or a bit more NAND.


Love to see the evidence to back up those assertions.


RE: Mick!
By JasonMick (blog) on 5/4/2012 2:56:02 PM , Rating: 4
quote:
Love to see the evidence to back up those assertions.

I'm not sure if you are unable to use Google/Bing, are unwilling to do so over your devotion to Apple, or are merely to deep in the distortion field to bring yourself to read what you might find....

But for you education, here you go...

quote:
i. Exploitive labor contracts


http://www.zdnet.com/blog/btl/apples-foxconn-flap-...

quote:
ii. One of the most abusive records... tax evasion


http://www.guardian.co.uk/technology/2012/feb/20/f...

http://www.nytimes.com/2012/04/29/business/apples-...

http://www.dailymail.co.uk/news/article-2127048/Ap...

quote:
iii. Nickel and diming customers with massive markups


http://www.macuser.com/hardware/apple_ram_cheaper_...

http://gizmodo.com/5185422/apple-now-offers-1200-8...

http://www.electronista.com/articles/12/01/06/anal...

http://www.techsip.in/2012/01/07/16-gb-nand-flash-...

Somehow I FEAR my point will be lost on you, though, my friend. :)


RE: Mick!
By BSMonitor on 5/4/2012 4:24:16 PM , Rating: 1
None of that is ANY different than what multitudes of other corporations are doing.

i. Apple does not own Foxconn. Foxconn was around long before Apple started raking in it's billions. Foxconn is responsible for it's employees well being, not Apple.

ii. Should we bring up the Google offices around the world?? Effective tax rate of 2.4%??

http://www.bloomberg.com/news/2010-10-21/google-2-...

iii. Where have you been?? Overcharging for options has existed in the PC world since the dawn of PC time. Go to Dell, HP, etc.. And add to the base config's. The cost is MUCH more than if the same upgrade were purchased at newegg. On top of that, go buy a car, and start adding options. Options are meant to rake profit.

Finally, if someone is willing to pay, charge them for it. It's America, they do not charge $5 a ticket to go to the Super Bowl. Why?? Because demand drives the price to the $1000s.

All your evidence can be said about your favorites, Google, AMD, etc..

You simply are biased against Apple, and to a lesser extent Intel. Every one of your blogs related to either is evidence of that.

Hence my original point. Just waiting for you to take your usual shots at Apple. It's quite predictable.


RE: Mick!
By JasonMick (blog) on 5/4/2012 4:40:59 PM , Rating: 2
quote:
Apple does not own Foxconn. Foxconn was around long before Apple started raking in it's billions. Foxconn is responsible for it's employees well being, not Apple.
True. As I said, suppliers are culpable for accepting Apple's unfavorable terms in exchange for driving up revenue and then turning around and taking it out of their workers hides.

But you cannot deny Apple is part of this problem, and more so than some tech firms.
quote:
ii. Should we bring up the Google offices around the world?? Effective tax rate of 2.4%??

http://www.bloomberg.com/news/2010-10-21/google-2-...

And I don't know about this?

From my past pieces:
http://www.dailytech.com/Apple+Makes+95B+USD+in+Br...
quote:
Google Inc. (GOOG) -- makers of the world's most used smartphone operating system and the world's most used search engine -- based itself in Ireland and has subsidiaries in the Caribbean and Luxembourg for more tax dodging gains.

Google told The Daily Mail that this scheme -- which many would call "tax dodging" -- is necessary in today's corporate atmosphere, as responsibility to shareholders. States a Google spokesperson, "We have an obligation to our shareholders to set up a tax-efficient structure, and our present structure is compliant with the tax rules in all the countries where we operate."


And...
http://www.dailytech.com/President+Obama+Invites+Y...
quote:
The President's support of Google also raises some eyebrows given Google's clever use of the "Double Irish" and "Dutch Sandwich" (legal) tax evasion strategies, funneling money through Ireland, the Netherlands and Bermuda, courtesy of federal loopholes, to avoid paying federal income taxes on its profits. These strategies reportedly saved Google $1B USD in 2011 and cut the company's effective tax rate to 18.8 percent, far less than the standard 35-40 most small businesses pay on earnings.

Google officially raised almost a million dollars for the President's election bid.


Ah this old chestnut again:
quote:
All your evidence can be said about your favorites, Google, AMD, etc..

You simply are biased against Apple, and to a lesser extent Intel. Every one of your blogs related to either is evidence of that.

Methinks you have not read my non-Apple pieces very carefully. I've oft criticized Google:
http://www.dailytech.com/FCC+Google+Knowingly+Used...

I've even been criticized for selling AMD short:
http://www.dailytech.com/article.aspx?newsid=24506...

But whatever, don't let me remove you from your fantasy world. I'm sure you like it there.


RE: Mick!
By Tony Swash on 5/4/12, Rating: -1
RE: Mick!
By themaster08 on 5/6/2012 4:35:57 AM , Rating: 1
None of what you said there really disputes Mick's claims, it's just the same regurgitated endorsement that you copy and paste all the time.


RE: Mick!
By elleehswon on 5/7/2012 12:42:58 PM , Rating: 1
quote:
Dude - do you really believe the silly stuff that you type? That there is some dark nefarious reasons that Apple takes everyone else to the cleaners? When the real reason is just so simple: Apple are just better at what they do than anyone else.
You are correct. Apple is better than anyone else at doing what they do best....take people to the cleaners.


"The whole principle [of censorship] is wrong. It's like demanding that grown men live on skim milk because the baby can't have steak." -- Robert Heinlein














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki