1. Akshay Masand's Avatar


    The mobile market continues to become a two-horse race for profitability between Apple and Samsung. The two rivals are now commanding 109% of profits – a number made possible because its competitors are actually losing money in the smartphone space. The latest data from Canaccord Genuity provided by analyst T. Michael Walkley estimates that Apple took 56% of the operating profits for feature phones and smartphones in the third quarter of calendar 2013. Coming in close second was Samsung, which took 53% of the industry profits.

    In contrast, all of the competition lost money, with the exception of Sony, which ended up breaking even during the quarter. The biggest loser of the bunch ended up being BlackBerry, which represented a -4% of industry profits, followed closely by Google-owned Motorola, which took -3%. Nokia, LG and HTC were all about even with one another, each representing -1% of mobile profits according to the data.

    Walkley noted that the share controlled by Apple and Samsung is likely lower when the profits of Chinese vendors such as Lenovo, ZTE, Huawei and Coolpad are included. However, the Chinese manufacturer profitability data isn’t available and couldn’t be included in the industry-wide comparison.

    The Cupertino California company saw its share of profits increase from 53% in the second quarter to 56% in the third quarter, despite the fact that the company was transitioning to the launch of the iPhone 5S and iPhone 5C, late in the quarter. Walkley said Apple’s greater share of profits came to slightly higher sequential iPhone unit sales as well as more pronounced losses from both BlackBerry and HTC. The analyst mentioned the following regarding the matter:

    Given a full quarter of iPhone 5s/5c sales, we anticipate very strong operating profit share for Apple during the holiday quarter. Further, we believe Apple's value share of the handset market is even higher than our estimates... considering Apple's dominant share of the tablet market, as some Android OEMs include tablet sales in reported smart device sales and profits.
    When tablets, notebook and other mobile devices are included, Apple earned more than Samsung, LG, Nokia, Huawei, Lenovo and Motorola’s mobile divisions combined, according to separate data released by Strategy Analytics. Concentrating on phones alone, Apple and Samsung are estimated to have accounted for more than 100% of industry profits for quite some time now.

    Source: Canaccord Genuity, Strategy Analytics via AppleInsider

    Twitter: @AkshayMasand
    2013-11-15 01:55 AM
  2. thazsar's Avatar
    I haven't read the article but it blows my mind 109% that they have claimed 9% more profit than the highest profit that could be achieved!
    2013-11-15 05:18 AM
  3. Dark_Ninja's Avatar
    Haha me too
    http://www.vicrosdesigns.net/imgs/DNsigv3.png
    2013-11-15 06:17 AM
  4. hogcia's Avatar
    Blackberry needs to die already.
    2013-11-15 08:54 AM
  5. Albut's Avatar
    How do you get 109% of profits? That's more than is available!
    2013-11-15 09:11 AM
  6. thazsar's Avatar
    How do you get 109% of profits? That's more than is available!
    Because once their competitors started losing money, Apple/Samsung were able to break the laws of mathematics!

    This is a historic event and everything we've ever learned is now altered!!! LOL!
    2013-11-15 01:00 PM
  7. carlos6438's Avatar
    I haven't read the article but it blows my mind 109% that they have claimed 9% more profit than the highest profit that could be achieved!
    Well that means that Blackberry and Microsoft made combined -9% profits to make this possible maybe? lol
    2013-11-15 02:08 PM
  8. budsalinger's Avatar
    Because once their competitors started losing money, Apple/Samsung were able to break the laws of mathematics!

    This is a historic event and everything we've ever learned is now altered!!! LOL!
    Sir, you just made me shoot milk out of my nose. You will be my favorite person of the day.
    2013-11-15 03:25 PM
  9. jOnGarrett's Avatar
    This is why we need a viable 3rd option. 2 juggernauts (with one of them being a patent troll) is not good for the consumer.
    2013-11-15 11:27 PM
  10. King_O_Hill's Avatar
    This is why we need a viable 3rd option. 2 juggernauts (with one of them being a patent troll) is not good for the consumer.
    I agree with ya there, Samsung should stop being a pattern troll.

    Check out WW3 for iOS 9/10 - Widget-Weather 3.0
    2013-11-16 01:51 AM
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