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.
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.
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%.
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.
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.
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.
Sunday September 24, 2023 12:45 pm PDT by Joe Rossignol
Apple previously announced that macOS Sonoma will be released this Tuesday, September 26. The free software update includes many new features and changes for the Mac, including the five that we have highlighted below. In addition to these five features, we have shared the full release notes for macOS Sonoma below for a complete overview of everything new. Desktop Widgets macOS Sonoma...
Friday September 22, 2023 9:29 am PDT by Joe Rossignol
Are you skipping the iPhone 15 Pro and waiting another year to upgrade? If so, we already have some iPhone 16 Pro rumors for you. Below, we recap new features rumored for the iPhone 16 Pro models so far:Larger displays: The iPhone 16 Pro and iPhone 16 Pro Max will be equipped with larger 6.3-inch and 6.9-inch displays, respectively, according to Ross Young, CEO of Display Supply Chain...
Monday September 25, 2023 12:50 pm PDT by Marko Zivkovic
The iPhone 16 series is expected to gain an additional capacitive button, known internally as the "Capture Button." Codenamed "Project Nova," the button is likely to be one of the main selling points of the iPhone 16 lineup, assuming it gets past the initial testing phase. The Capture Button is located on the same side as the Power button, only positioned slightly lower - where the mmWave cutout...
Monday September 25, 2023 3:16 am PDT by Tim Hardwick
Apple could be preparing to release a seventh-generation iPad mini before the end of the year, based on a new report by DigiTimes. In an article discussing stagnating global tablet demand in the second half of 2023, the Taiwan-based outlet forecasts an uptick in Apple's share of the market owing to orders for a "small-size" iPad in the fourth quarter. From the report (see bold): In the...
Top Rated Comments
Now we hear that Apple holds approximately three-fourths of the industry profits, i.e. 75%.
Surreal.
And oh! Android's winning!
Great for Apple and their profits!
Tim Cook would disagree :) So would all those other companies.
Well then the nokias and motos of the world should try building something that someone wants to buy.