Samsung Gobbles 95% of Global Android Smartphone Profits in Q1
May 16, 2013 9:38 AM
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Samsung dominates the Android market
Samsung is destroying all other competitors in the Android smartphone market with the popularity of its devices. A new report is in from Strategy Analytics that shows during Q1 of 2013, Samsung captured 95% of global Android smartphone profits.
Strategy Analytics reports that total smartphone profits during the quarter reached $5.3 billion according to estimates. The research firm also says that the Android platform accounted for 43% of the entire smartphone industry's operating profits.
Samsung is estimated to have generated $5.1 billion in operating profit around the globe during Q1. Strategy Analytics says that Samsung owes the massive share of profits it grabbed to its efficient supply chain, sleek products, and effective marketing.
LG was in second place with a mere 3% of the global profit share. The research firm estimates that LG generated operating profits during Q1 of $0.1 billion leaving all other Android device makers to fight over the $0.1 billion that was left.
Strategy Analytics believes that Samsung is such a heavyweight in the Android smartphone market that it could use its power to request first or exclusive updates for Android software before rival manufacturers.
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5/16/2013 10:53:12 AM
Somebody seriously calculated "shares" of profit? Not sales or income, but profit? Doesn't this just prove that Samsungs devices are the most overpriced, or their workforce is the most underpaid, or they know the best tax prevention tricks?
5/16/2013 11:02:00 AM
No profits are high because they actually manufacturer their components, hell they even manufactured crApples components... Until recently....
5/18/2013 5:51:04 AM
Profit margins are the partly product of the segment that they're being sold to. High end smartphones have higher profit margins than low end devices, same as with desktop computers and laptops.
Something like a GS3 is going to have much higher margins than a low end phone that is given away for cheap or free. Samsung sells the most high-end Android phones by a wide margin, so it makes sense that they have higher profit margins than other handset makers like LG, HTC, etc. Its the same reason why Apple's profit margins are so high, pretty much all they sell are high end phones.
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