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Apple and Samsung Claim 99% of Profits Among Top Mobile Phone Vendors

Thursday May 3, 2012 7:46 am PDT by Eric Slivka
Asymco's Horace Dediu has released his data on operating profits among the eight top mobile phone vendors for the first quarter of 2012, finding that Apple and Samsung together now hold 99% of the profits with Apple representing the lion's share at 73%. Apple's share was down slightly from 75% in the previous quarter, but Samsung boosted its share from 16% to 26% to shut out nearly all other vendors.


Among the other six vendors, only HTC managed to eke out a profit, taking 1% of the total industry profits. Research in Motion, LG, Sony Ericsson, Motorola, and Nokia each failed to turn a profit on their handset businesses.


The rise of Apple and Samsung at the expense of all of the other major vendors comes as the mobile phone market continues to expand and more expensive smartphones make up an increasing percentage of overall mobile phone sales. Consequently, Apple and Samsung share growth is coming even as the total pool of profits is surging. Over the past two years, profits taken by these top eight vendors has risen from $5.3 billion to $14.4 billion, driven in large part by carrier subsidies worth hundreds of dollars on each of the growing number of smartphones sold.
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shaunp
14 months ago
As much as I don't like the current Nokia or Motorola phones, there needs to be more competition. Having Apple and Samsung covering most of the market between them is not a good thing for anyone.
Rating: 22 Positives
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dethmaShine
14 months ago
Somewhere in 2010, we heard Apple has more than half of the industry profits (50%). Last year, we heard that Apple had approximately two-thirds of the industry profits(66%).

Now we hear that Apple holds approximately three-fourths of the industry profits, i.e. 75%.

Surreal.

And oh! Android's winning!
Rating: 19 Positives
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camnchar
14 months ago
So long as this continues, it doesn't matter what Android's market share is.
Rating: 13 Positives
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Eduardo R.
14 months ago
It's truly incredible how a company that dominated so much of a market for a relatively long time, such as Nokia and RIM, can fall so rapidly into the abyss in a few years only. Likewise, it's amazing how the iPhone has risen to glory so fast. It's an amazing cel. phone, after all.

Great for Apple and their profits!
Rating: 12 Positives
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bbeagle
14 months ago
Apple has a MONOPOLY of profits. OMG! Let's sue Apple somehow so they don't take so much money! :rolleyes:
Rating: 11 Positives
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The Mercurian
14 months ago

Somewhere in 2010, we heard Apple has more than half of the industry profits (50%). Last year, we heard that Apple had approximately two-thirds of the industry profits(66%).

Now we hear that Apple holds approximately three-fourths of the industry profits, i.e. 75%.

Surreal.

And oh! Android's winning!


Android/Google are not a manufacturer. Therefore these graphs are irrelevant to them since these graphs show profit/loss from the manufacture and sale of phones. Effectively Google/Android bypass the risk of loss here by having the suckers you see on the graph make the phone for them. What this does prove, is that Apple have a cheaper manufacturing process and/or can command a higher premium.

So long as this continues, it doesn't matter what Android's market share is.


Again - not relevant to current discussion. Android earns google cash through other means - i.e. advertising.
Rating: 7 Positives
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nagromme
14 months ago

When you have a 30%-45% margin profits are easy to make.


Some may be thinking that achieving 30-45% margins on products that are better made and more functional than the competition yet still cost about the same is “easy.”

Tim Cook would disagree :) So would all those other companies.
Rating: 7 Positives
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QCassidy352
14 months ago

As much as I don't like the current Nokia or Motorola phones, there needs to be more competition. Having Apple and Samsung covering most of the market between them is not a good thing for anyone.


Well then the nokias and motos of the world should try building something that someone wants to buy.
Rating: 7 Positives
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caseyh
14 months ago
It surprises me that Motorola doesn't have a bigger slice of this. They barely show up (MOT in green) at the bottom of the second graph.

I see lots of ads and chatter about their phones, but maybe 1) there's not selling many or 2) they're not making much money on what they sell.
Rating: 6 Positives
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Mattie Num Nums
14 months ago

Somewhere in 2010, we heard Apple has more than half of the industry profits (50%). Last year, we heard that Apple had approximately two-thirds of the industry profits(66%).

Now we hear that Apple holds approximately three-fourths of the industry profits, i.e. 75%.

Surreal.

And oh! Android's winning!


When you have a 30%-45% margin profits are easy to make.
Rating: 6 Positives

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