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  • Beyond Apple and Samsung, Does Anyone Else in the Handset Business Really Matter?


    These days, Apple and Samsung are the only companies that really matter in the handset business. At least, that's the conclusion that's easily reached on a day like today when Canaccord Genuity reports that these two titans jointly control 106% of handset profits.

    All told, Apple's iPhone 5s and Samsung's Galaxy S5 were the big winners for their respective makers last quarter.

    Between January and March of this year, Apple raked in 65 percent of profits from the smartphone industry. Samsung’s cut was 41 percent. And for everyone else? They either saw a negative value share or were flat quarter over quarter. Nokia and BlackBerry lost the most traction along with Motorola. LG, HTC, and Sony saw no improvement.

    So is the past any indication of the future?

    "Given the current competitive dynamics, we believe Apple and Samsung will maintain dominant value share during 2014," says Canaccord Genuity analyst Michael Walkley. "With BlackBerry struggling and Microsoft purchasing dominant Windows Phone OEM Nokia, we believe Chinese OEMs with strong Android portfolios will likely emerge as stronger long-term competitors to Apple and Samsung."

    Source: AppAdvice
    This article was originally published in forum thread: Beyond Apple and Samsung, Does Anyone Else in the Handset Business Really Matter? started by Michael Essany View original post
    Comments 19 Comments
    1. thazsar's Avatar
      thazsar -
      106%, huh? Pretty cool that they can break the laws of mathematics...
    1. bigboyz's Avatar
      bigboyz -
      A reminder of what most of us already know. When you speak of smart phones, those are the two companies that matter at this time.
    1. vartanarsen's Avatar
      vartanarsen -
      Isn't google's Nexus 5 with its affordable price but samsung/apple standard coming up?
    1. aceestes's Avatar
      aceestes -
      Quote Originally Posted by thazsar View Post
      106%, huh? Pretty cool that they can break the laws of mathematics...
      Well it's actually possible when other company's are negative in profit share. Sucks for the little guys. They'll need something really innovative to push their way in to anything that can be considered competitive.
    1. deltabell's Avatar
      deltabell -
      this must be just for america?
    1. Dark_Ninja's Avatar
      Dark_Ninja -
      Um since when did Samsung matter? Lol I always liked HTC
    1. Dgow452's Avatar
      Dgow452 -
      Yes
      Whoever comes out with holographic display(keyboard . Screen to wall so I can watch the game in any size is going to be the next apple

      We need to push the boundaries
      Whoo hoo a thinner and bigger screen some updates sure there are minor improvements but come on now. How many billions do you need to spend for that

      I remember in high school thinking a phone with real time video would be awesome.btw that was 88 and I think car cells just came out round then.Years later here we are, do we need to wait another 30 years
      Was apple around then?1988

      More different makes by many different companies for many different people can only equal one thing

      But blatantly making ur product like someone's else's is totally wrong

      "So is the past any indication of the future?"

      History often repeats itself


      Peace
    1. thazsar's Avatar
      thazsar -
      Quote Originally Posted by aceestes View Post
      Well it's actually possible when other company's are negative in profit share.
      I still disagree... The absolute total of something is 100%. It doesn't matter if another element depleted, the most that can be achieved by all the elements combined is 100% (unless we're including extra credit which is not the situation here)

      Furthermore, how can Samsung & Apple have 100% of the market?!?! That's a ridiculous statement! That would mean that no other company is selling smartphones. We all know that HTC, LG & Windows have sold, at least, '1' phone this quarter. Even one phone sold accounts for a percentage of the market...right???

      So, with that being said, please pay attention to what you guys are writing. It's starting to come across as ignorance!
    1. iBwizzle's Avatar
      iBwizzle -
      BlackBerry 10, WP8+, and Salifish still matters to me. Unlike most consumers aka slaves, I still appreciate the options of multiple mobile operating systems.
    1. CrAcKzZZ's Avatar
      CrAcKzZZ -
      Quote Originally Posted by thazsar View Post
      I still disagree... The absolute total of something is 100%. It doesn't matter if another element depleted, the most that can be achieved by all the elements combined is 100% (unless we're including extra credit which is not the situation here)

      Furthermore, how can Samsung & Apple have 100% of the market?!?! That's a ridiculous statement! That would mean that no other company is selling smartphones. We all know that HTC, LG & Windows have sold, at least, '1' phone this quarter. Even one phone sold accounts for a percentage of the market...right???

      So, with that being said, please pay attention to what you guys are writing. It's starting to come across as ignorance!
      What you're talking about is income, what the article is referring to is profit. If HTC, LG and Windows sell at least one phone they will have get money from that transaction, which is income, but after considering all the expenses (taxes, interest, etc), whatever money the company has left over is profit. So if LG received $1000 in income but spent $1001 they didn't make any profit. So technically this articles is correct. If no other handset company made profit other than Samsung and Apple then they have 100% or more control of "handset profits". I feel like this is pretty weird how no other "handset" companies are turning profit but it is what it is.
    1. thazsar's Avatar
      thazsar -
      Quote Originally Posted by CrAcKzZZ View Post
      What you're talking about is income, what the article is referring to is profit. If HTC, LG and Windows sell at least one phone they will have get money from that transaction, which is income, but after considering all the expenses (taxes, interest, etc), whatever money the company has left over is profit. So if LG received $1000 in income but spent $1001 they didn't make any profit. So technically this articles is correct. If no other handset company made profit other than Samsung and Apple then they have 100% or more control of "handset profits". I feel like this is pretty weird how no other "handset" companies are turning profit but it is what it is.
      I see what you're saying but how can Apple make 65% profit of the market and Samsung get 41% if the market? The numbers still don't match.
    1. Jozelito617's Avatar
      Jozelito617 -
      Htc is getting up high...
    1. fanboyfanboy's Avatar
      fanboyfanboy -
      If I wAs ever going to go with an android (which won't happen but for the "what if" fact) it would be the htc one. Hands down great handset
    1. joseph102's Avatar
      joseph102 -
      N wt abt LG N HTC.. They are growing very fast... In affordable smartphone category Karbonn , micromax are doing good business..
    1. Rondon360's Avatar
      Rondon360 -
      Nokia and Motorola need to join forces, buy each other out, whatever. And make a smartphone to compete with Apple and Samsung. Cause in my opinion they made good cell phones and where the leaders at one time.
    1. *T*'s Avatar
      *T* -
      Quote Originally Posted by thazsar View Post
      I still disagree... The absolute total of something is 100%. It doesn't matter if another element depleted, the most that can be achieved by all the elements combined is 100% (unless we're including extra credit which is not the situation here)

      Furthermore, how can Samsung & Apple have 100% of the market?!?! That's a ridiculous statement! That would mean that no other company is selling smartphones. We all know that HTC, LG & Windows have sold, at least, '1' phone this quarter. Even one phone sold accounts for a percentage of the market...right???

      So, with that being said, please pay attention to what you guys are writing. It's starting to come across as ignorance!
      Sorry dude, you don't actually know everything. You're wrong. Suck it up.
    1. thazsar's Avatar
      thazsar -
      Quote Originally Posted by *T* View Post
      Sorry dude, you don't actually know everything. You're wrong. Suck it up.
      Never claimed that I do know everything. In fact, I'm pretty dumb and I'm eager to learn whenever possible.

      So...explain to me how I'm wrong? How can Apple have 65% of the market profit AND Samsung have 41% of the profit?!?! Seriously...that's not mathematically possible.

      And using the excuse that other companies lost profit is not valid. Just cuz they lost profit doesn't mean you tack that loss onto another company's return. Apple has 65% and Samsung has 35% or Apple has 59% and Samung, 41%. Or it meets somewhere in the middle...

      You can't have more than what is the top number because that number is all encompassing.
    1. aceestes's Avatar
      aceestes -
      Quote Originally Posted by thazsar View Post
      Never claimed that I do know everything. In fact, I'm pretty dumb and I'm eager to learn whenever possible.

      So...explain to me how I'm wrong? How can Apple have 65% of the market profit AND Samsung have 41% of the profit?!?! Seriously...that's not mathematically possible.

      And using the excuse that other companies lost profit is not valid. Just cuz they lost profit doesn't mean you tack that loss onto another company's return. Apple has 65% and Samsung has 35% or Apple has 59% and Samung, 41%. Or it meets somewhere in the middle...

      You can't have more than what is the top number because that number is all encompassing.
      See why your getting confused is market share vs profit share. It's not that other companies didn't sell phones. It's that they lost money doing it. So let's say there were only two companies in the market. If company A made large profit and company B took -2 profit because they lost money, then company A jumps to 102% profit SHARE because the loss of profit must be accounted for in a profit analysis. They made money where money was loss which can boost you past the 100% mark. It's a misconception that you can't be over 100% of something. If I tell you to pour a gallon of out a bucket and you pour a gallon and a half out then you just gave me 150% of what I asked for.
    1. thazsar's Avatar
      thazsar -
      ^^^
      That right there makes sense! Thanx!