Unbeatable? Apple and Samsung Account for 100% of Worldwide Smartphone Profits

7 May


A recent report from market research firm Cannacord Genuity reveals that Apple and Samsung together account for approximately 100% of the smartphone industry’s profits. Aside from the two tech giants, whose dominance in the market appear all but secured, the other major companies covered by the research firm—ie. LG, Nokia, Sony, Motorola (Google), HTC, and Blackberry—either showed insignificant earning performances or experienced noticeable operating income losses.

In the first quarter of 2013, Apple’s total share of the global smartphone market’s profits arrived at approximately 57%; although higher than the earnings made by the other smartphone makers, the figure is 15% short of what the Cupertino company managed to pull off during the fourth quarter of last year (72%). Samsung, with the help of the momentum derived from the Galaxy S series, earned approximately $US 6.02 billion revenue during the first three months of 2013, which enabled its profit share to soar from 29% in 4Q12 to around 43% in 1Q13. HTC, Nokia, Blackberry, and Sony each showed profits ranging from 0 to 1%. Motorola, acquired by Google last May for a hefty $US 12.4 billion, fared the worst among the smartphone companies with an operating loss of 179 million and a dismal -1% profit share for the first quarter.

According to news sources like Technews, the seemingly perpetual dominance of Apple and Samsung is to a certain extent attributable to their popularity within the North American smartphone market. Despite the persistent rumors of its waning demand and oversupply, the iPhone 5 is reportedly still the best selling item for major US carriers like AT&T, Verizon, and Spring. The Galaxy S3, on the other hand, is currently observed to be dominating the top position on T-Mobile’s smartphone charts.

Looking towards the future, Cannocord Genuity expects Samsung’s market share to increase substantially as its smartphone sales momentum continues into the second quarter. Apple, similarly, is not expected to fare too badly despite the various ambiguities surrounding the iPhone 5S and budget iPhones’ release dates. Following the eventual launch of the Galaxy S4, it is not unlikely for the two companies to again account for 100% or more of the smartphone market’s total profits.

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