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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 Guspaz on 5/7/2012 12:36:04 PM , Rating: 2
There seems to be this assumption that "when Apple users try Android phones, they will realize how blind they were and switch". I don't really understand this mentality. I've tried Android. I've tried iOS. As much as I like certain parts of Android, I don't like it on the whole (although it's improving a bit) and greatly prefer iOS. I like the intuitive interface, I like the restrictions that keep me safe (while others rail against them). Am I not entitled to make my own choice for my own decisions?

I have nothing against Android. I like their goals and wish the platform well, even if I don't like using it personally. But anybody who says that I use an Apple product because it's a status symbol or because I'm blinded somehow clearly doesn't have any sort of valid objective opinion. Unless you can look at each platform and see the good and the bad of each and make an informed decision based on that, rather than being an "apple fanboy" or "fandroid" or "microsoft fanboy" or "blackberry fanboy" (or whatever these terms are) and choosing a platform, you really shouldn't be criticizing other platforms.

Windows Phone 7, for example... I hate the user interface, but it DOES do some nice things with information-at-a-glance (and exposing that to developers), it's wonderfully easy to develop for (I might own nothing but Apple mobile products, but I went to Microsoft TechDays and attended several panels on WP7 development just because I was interested), and they've done great things with maintaining UI responsiveness. I'd probably never buy a Windows phone because I don't like the overall interface, but I can see that they're doing a lot of cool stuff with it.

I can point out benefits and drawbacks to all platforms in a relatively unbiased manner, and anybody who wants to advocate one platform over another should be able to do the same.

RE: carriers
By TakinYourPoints on 5/7/2012 7:09:34 PM , Rating: 2
There seems to be this assumption that "when Apple users try Android phones, they will realize how blind they were and switch".

Yup, and it is quite an arrogant and heavily biased opinion.

"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive

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