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."
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5/7/2012 3:20:33 AM
Better from you, too. You do realise that it's not necessarily your views that get you downrated, but the way they are expressed? Now you've actually added an ounce of credibility to your post by voicing your opinions of the other platforms, having used them.
I can't say that I completely agree, although I see your point. For many iPhone users, I find that they simply use their phones for making calls, sending messages, a very few applications, and for social networking. That's purely anecdotal, of course. My point is that there are also iPhone users that are not drawn into its ecosystem.
Out of the three, I personally prefer Windows Phone. The UI feels much more intuitive, faster, consistent, and much less clunky to use, for example the use of a physical back button I feel is much more approriate than an on-screen one that is sometimes at the bottom of the screen, sometimes at the top depending on your application. It brings an inconsistency to a platform and adds to its clunkiness, especially for those devices with larger screens.
Only time will tell, of course, but I believe Windows 8 will leverage sales of Windows Phone if Microsoft play their cards right. They need to focus on integration, not just UI synergy.
There are also many aspects in which Microsoft could improve upon, such as Xbox Live. Having achievements on your phone is cool, but what would be really great if there were some true online multiplayer games. A Halo FPS on Windows Phone would be truly amazing. Even a port for the first Halo games would be enough. Instead Microsoft waste their time developing Xbox Live for iOS, which I think was a completely stupid thing to do. One of the features that differentiated Windows Phone was its Xbox Live integration. They might as well have developed it for the PlayStation 3.
Speaking of similar cases, Skype is another. The Windows Phone variant absolutely blows. Microsoft own Skype, yet every other platform has a far superior Skype application. The WP version can't even run in the background. It's a mess. I know Microsoft are going to be bringing further integration with Apollo, however this is now, and this is not helping sales now.
Microsoft need to focus much more on integration with their other platforms and services, and bring them all together in such a way that is appealing to the consumer, not a broken down, half-baked mess because their efforts are focussed more on developing applications for their competitors. Once they get that right, it will add far more value to the platform as a whole, then they need to market the hell out of it, showing the strengths of the platform. They might just then be able to gain some ground on their established competitors.
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