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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

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RE: carriers
By TakinYourPoints on 5/4/2012 9:31:20 PM , Rating: -1
That said, Apple's phones have some notable downsides: 1. Relatively high cost (e.g. my Lumia 900 was free)

A high end Android phone costs about the same, with or without a contract. I like WP7 but you are being intellectually dishonest here, the Lumia 900 hardware isn't comparable, and Microsoft and Nokia are heavily subsidizing it themselves to buy marketshare.

5. Having to deal with sputtering hatred and FUD from of raging anti-fanboys


Hateboys talk on forums about iPhones more than actual iPhone users, it's pretty funny.

6. Sluggish 3rd party security support from Apple.

You're inventing things at this point. iOS security is very high, up there with Blackberry. It is partly due to the fact that it supports pretty much every ActiveSync protocol out there, two dozen compared to the roughly six that Android uses. iOS is far more secure. Additional security comes from vetting applications through the App Store. Malware on iOS is nearly non-existant while Android anti-malware apps covers only about 20% of the malware out there, and it is accessible everywhere.

“We do believe we have a moral responsibility to keep porn off the iPhone.” -- Steve Jobs

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