Apple and Samsung Thrive as they take 103% of Mobile Phone Profits in 2012
Both Apple and Samsung accounted for roughly 103% of mobile phone profits in 2012. At a quick glance, you may think that it isn’t possible for someone to capture 103% of something like profits but this number was made possible because of losses incurred by rivals Motorola, Nokia and Sony. Apple took a commanding 69% of handset profits last year, more than doubling the next closest company, Samsung, which accounted for 34%.
Together, the two companies have more than 100% of the industry’s profits, according to recently released research by Canaccord Genuity. Nokia’s losses gave it a negative 2% of industry profits while Motorola and Sony Ericsson both accounted for negative 1%. In fact, the only other company that even saw any positive in 2012 was HTC, which accounted for just 1% of industry profits. Other competitor’s in the space, such as BlackBerry and LG are estimated to have broken even.
Apple’s share of the industry’s profits managed to be even greater in the fourth quarter of 2012, when the company launched the iPhone 5. In the holiday quarter, Apple took 72% of the industry profits, while Samsung’s share slid to 29%. Analyst Michael Walkley of Canaccord Genuity expects Apple and Samsung to retain their dominant shares of the handset industry for the foreseeable future, an expectation which many are likely to agree with.
Source: Canaccord Genuity