Apple, Samsung Snag 99% of Mobile Phone Profits
May 4, 2012 11:53 AM
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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.
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."
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5/7/2012 12:56:52 AM
The implication is that Apple is forcing Foxconn to exploit its workers to make up for the less favorable (in terms of profit) terms. I'd like to know if that's actually the case, or if the Foxconn workers that supply other large companies are being treated basically the same. Here's a list I found recently:
"Foxconn's clients include Acer, Amazon.com, Apple, Cisco, Dell, Hewlett-Packard, Intel, Microsoft, Motorolla, Nintendo, Nokia, Samsung, Sony, Toshiba, and Vizio."
If it's the case, which I doubt very much, that Foxconn doesn't exploit workers making products for any of the other companies in that list, then I will be very surprised.
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
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