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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 Tony Swash on 5/7/2012 5:54:20 AM , Rating: 0
hen Apple's fortunes are on the upswing, Samsung gets more profits by making stuff for it,

True. It's just that Samsung make less profit than Apple, their business model is not as good. based on last year's already passed figures Apple makes about third more profit on about a half the turnover compared to Samsung's total operation.

Two, and also very important, brands matter not one iota like you think it does. Have you noticed how people will stay with the same things no matter how full of shit they are? Once you've gone Android, would you leave for something else? No?

The only problem with that statement is that all the voluminous evidence points to a different conclusion. Many, many surveys have shown that Apple iPhone customers are much, much more brand loyal than Android customers. That should be no surprise, iPhone is powerful and well known brand whereas Android (as a consumer brand) is not.

The magic of heroin, cocaine, krokodil and other exotic contraband lies with this little gem: it's ridiculously easy to get hooked into it - now try getting out of it. Apple knows this, that's why so many of its iOS features are tied with iTunes. There simply isn't a proverbial black hole powerful enough to suck everyone in over at the Android realm.

There is zero evidence that a primary reason that people stick with Apple products is because they feel or actually are 'locked in'. All the evidence suggest that there is in fact a halo effect where people buy a gateway product, it used to be the iPod but now is the iPhone and iPad, and very much like what they find and go on to buy more Apple products.

I know that this is a very hard fact to swallow for many but it is really very simple: Apple products are very, very popular because people really, really like them. It's that simple. Of course why people really like Apple products so much and what Apple does to make it's products so popular is a more complex question, but the mechanism of Apple's success is very simple: they make stuff people want to buy.

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