Apple's Beats brand in April unveiled the Powerbeats Pro, a redesigned wire-free version of its popular fitness-oriented Powerbeats earbuds.
Apple Takes 104% of All Smartphone Profits Following Galaxy Note 7 Recall
Apple accounted for over 100 percent of smartphone industry profits in the third quarter of this year, according to estimates published by BMO Capital Markets on Thursday.
Analyst Tim Long, quoted in the Investor's Business Daily, said Apple's staggering 103.6 percent profit share in Q3 2016 came largely as a result of significant losses posted by rival vendors including LG and HTC, and despite Apple continuing to shift fewer handsets year on year.
Based on units alone, Samsung accounted for 21.7 percent of all smartphones sold, with Apple coming in second with a 13.2 percent share. In terms of profits however, Samsung came a distant second to Apple, capturing only a 0.9 percent share.
According to the same report, Apple managed 90 percent profit share in the same quarter a year ago. However, this year Apple's iPhone 7 numbers were undoubtedly helped by Samsung's hugely damaging Galaxy Note 7 recall and discontinuation, which effectively took the South Korean company out of this year's flagship smartphone race, indicating Apple's profit share is unlikely to be sustained in the long term.
Despite the impressive numbers, Apple's recent third quarter financial results reported its first full-year revenue decline for Apple since 2001, although Apple expects to return to revenue growth in the holiday season on the back of sales of the iPhone 7 and iPhone 7 Plus.
Analyst Tim Long, quoted in the Investor's Business Daily, said Apple's staggering 103.6 percent profit share in Q3 2016 came largely as a result of significant losses posted by rival vendors including LG and HTC, and despite Apple continuing to shift fewer handsets year on year.
Based on units alone, Samsung accounted for 21.7 percent of all smartphones sold, with Apple coming in second with a 13.2 percent share. In terms of profits however, Samsung came a distant second to Apple, capturing only a 0.9 percent share.
Samsung ceded market share in smartphone shipments to Apple and Chinese vendors in the third quarter because of its Galaxy Note 7 troubles, Long said. He expects further share loss by Samsung in the current quarter. Apple captured over 100% of smartphone industry profits for the first time, thanks in part to Samsung's weaker results, Long said.If accurate, the estimates represent the first time Apple has achieved smartphone industry profits of over 100 percent - an impressive number for a company owning only around 12 percent of the market.
According to the same report, Apple managed 90 percent profit share in the same quarter a year ago. However, this year Apple's iPhone 7 numbers were undoubtedly helped by Samsung's hugely damaging Galaxy Note 7 recall and discontinuation, which effectively took the South Korean company out of this year's flagship smartphone race, indicating Apple's profit share is unlikely to be sustained in the long term.
Despite the impressive numbers, Apple's recent third quarter financial results reported its first full-year revenue decline for Apple since 2001, although Apple expects to return to revenue growth in the holiday season on the back of sales of the iPhone 7 and iPhone 7 Plus.
Related Roundup: iPhone 7
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Top Rated Comments
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34 months ago
when math barely makes sense
Word hasn't gotten around that 100% is where it ends.
34 months ago
Maths was never my strong point.
Could somebody explain this in simple terms? How it's calculated?
34 months ago
Maths was never my strong point.
Could somebody explain this in simple terms? How it's calculated?
Apple makes 10 dollars.
Samsung looses 2 dollars
Total profit is now 8 dollars.
Apples share of total profit is now 10/8 = 125%.
34 months ago
Word hasn't gotten around that 100% is where it ends.
I am pretty sure this is how it was calculated
10^1.373=23.605
√ 23.605=4.858
4.858€ = 4.858$
sin(4.858) = -0.989
lg function Error() { [native code] } = NaN
acos(NaN) = NaN
104%
edit: [USER=643934]@keysofanxiety[/USER]
34 months ago
Maths was never my strong point.
Could somebody explain this in simple terms? How it's calculated?
Pretty simple. Imagine Apple is making 104 billion in the smartphone market, another company 20 billion, and yet another company operating at a loss of 24 billion. Total profits in the smartphone market are 100 billion.
This basically means that there are Android manufacturers that are operating at a loss in order to get cheaper phones into the market
34 months ago
The very best smartphones deserve all the profit.
This also does make Tim Cook's critics look pretty foolish.
This also does make Tim Cook's critics look pretty foolish.
34 months ago
Maths was never my strong point.
Could somebody explain this in simple terms? How it's calculated?
Could somebody explain this in simple terms? How it's calculated?
34 months ago
Its magical isn't it, just magical, and...pro. You're going to love it. We have exciting things in the pipeline.
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