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.

galaxy-s7-edge-iphone-7-plus
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.

Top Rated Comments

needfx Avatar
62 months ago
when math barely makes sense
Score: 113 Votes (Like | Disagree)
zhang96 Avatar
62 months ago
And 1000% of adapter profit.
Score: 84 Votes (Like | Disagree)
Thunderhawks Avatar
62 months ago
when math barely makes sense
Word hasn't gotten around that 100% is where it ends.
Score: 73 Votes (Like | Disagree)
AJ5790 Avatar
62 months ago
Maths was never my strong point.

Could somebody explain this in simple terms? How it's calculated?
If we are in the same industry and I make $100 but you lose $50 (or make a -$50 profit), the total profit across the entire industry (your "profit", and my profit) is $50, because your loss pulls the total profit for the industry backwards. So my percentage of the industry's profit is the profit I made divided by the industry profit times 100 (to convert from decimal to percent) or ($100/$50)*100=200%. Therefore I made 200% of the industry profit. In this case the iPhone is almost the ONLY phone that actually makes money. Samsungs profit share was 0.9% and HTC and LG lost money. That's what happens when you sell millions of devices at a loss.
Score: 71 Votes (Like | Disagree)
Json81 Avatar
62 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%.
Score: 53 Votes (Like | Disagree)
needfx Avatar
62 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]
Score: 47 Votes (Like | Disagree)

Top Stories

AirPods Pro Beta Firmware

AirPods Pro Beta Firmware Now Available

Wednesday July 21, 2021 6:50 am PDT by
Upcoming AirPods Pro firmware updates are now available to Apple Developer Program members as beta versions. AirPods Pro firmware beta one features FaceTime Spatial Audio and Ambient Noise Reduction. Custom Transparency mode, including Conversation Boost, was initially expected to be included in the beta but appears to have been delayed for a later version. Apple made the announcement...
maxresdefault

Apple Music to Livestream Premiere of Kanye West's New Album 'Donda' on Thursday

Wednesday July 21, 2021 1:49 am PDT by
Apple Music on Thursday will host a global livestream for the premiere of Kanye West's tenth studio album, titled "Donda." The sold-out event will take place at the Mercedes-Benz Stadium in Atlanta, Georgia, and Apple Music's livestream will start at 8:00 p.m. Eastern Time. The livestream was revealed in a Beats Studio Buds ad that aired during the NBA Finals. The ad features U.S. track...
General Apps Messages

All Three Major U.S. Carriers and Google Adopt Rich Communication Services, But No Sign of Apple Interest

Tuesday July 20, 2021 1:15 pm PDT by
For the last several years, Google has been pushing a new communications protocol called Rich Communication Services, or RCS. RCS is designed to replace SMS, the current text message standard, and it offers support for higher resolution photos and videos, audio messages, bigger file sizes, better encryption, improved group chat, and more. Verizon today announced that it is planning to adopt...
ios wifi settings

Apple Confirms iOS 14.7 Fixes WiFi Bug and Many Other Vulnerabilities

Wednesday July 21, 2021 11:38 am PDT by
Following the release of iPadOS 14.7 this morning, Apple has shared details on the security updates that are included in iOS 14.7, iPadOS 14.7, macOS Big Sur 11.5, watchOS 7.6, and tvOS 14.7, all of which came out this week. Notably, Apple's documentation confirms that the iOS 14.7 and iPadOS 14.7 updates address a WiFi-related vulnerability that could impact iOS devices when joining a...
macOS Malware Feature

Common Windows Malware Can Now Infect Macs

Wednesday July 21, 2021 8:13 am PDT by
A common form of malware on Windows systems has been modified into a new strain called "XLoader" that can also target macOS (via Bleeping Computer). Derived from the Formbook info-stealer for Windows, XLoader is a form of cross-platform malware advertised as a botnet with no dependencies. It is used to steal login credentials, capture screenshots, log keystrokes, and execute malicious files. ...
macOS Big Sur Feature Orange

Apple Releases macOS Big Sur 11.5 With Podcast App Updates and Bug Fixes

Wednesday July 21, 2021 10:15 am PDT by
Apple today released macOS Big Sur 11.5, the fifth major update to the macOS Big Sur operating system that launched in November 2020. macOS Big Sur 11.5 comes two months after the release of macOS Big Sur 11.4. The new ‌‌‌‌‌macOS Big Sur‌‌‌‌ 11.5 update can be downloaded for free on all eligible Macs using the Software Update section of System Preferences. macOS Big Sur...
idos 2 app ios

Apple to Pull 'iDOS 2' DOS Emulator From App Store

Thursday July 22, 2021 3:22 pm PDT by
iDOS 2, an app designed to allow users to play classic DOS games, will soon be pulled from the App Store, the app's creator said today. According to iDOS developer Chaoji Li, he tried to submit an iDOS update with bug fixes to the App Store, but was told that the update was rejected because it violated the 2.5.2 App Store guideline that says apps cannot install or launch executable code.Durin...
airpods 3 gizmochina Feature

AirPods 3 Rumored to Launch Alongside iPhone 13 at Expected September Event

Friday July 23, 2021 12:54 am PDT by
The third-generation AirPods will likely launch at the same event revealing Apple's upcoming iPhone 13 lineup, according to a report from DigiTimes, which makes the claim citing sources familiar with the matter. The report as a whole echoes previous reporting that production of the third-generation AirPods will kickstart in August, meaning a launch shortly after can be easily expected. DigiTi...
iPad mini pro feature

Next-Generation iPad Mini Will Reportedly Feature a Mini-LED Display

Thursday July 22, 2021 9:03 am PDT by
Apple is widely rumored to be planning a new iPad mini with a significant redesign, including a larger 8.5-inch to 9-inch display with slimmer bezels, a Touch ID power button instead of a home button, a USB-C port instead of a Lightning connector, and more. According to a paywalled preview of a DigiTimes report today, the sixth-generation iPad mini will also feature a mini-LED display:BLU...
airpods 3 gizmochina Feature teal

AirPods 3 Mass Production Said to Kick Off in August

Tuesday July 20, 2021 8:40 pm PDT by
Mass production of the third-generation AirPods will kick off in August, according to a new report from Nikkei Asia. They will reportedly join a number of other products such as the iPhone 13 lineup and redesigned MacBook Pro models as launches coming before the end of the year. Renderings of rumored third-generation AirPods design Rumored launch dates for the third-generation AirPods have...