When it comes to smartphone manufacturers, right now there are really only two companies that really matter – Apple and Samsung. Not only do they both have the most marketshare, but they’re making a ton of profit. In fact, they’re making so much money that the two companies combined account for 103% of the total cellphone profits of 2012.
Wait, isn’t it impossible to account for 103% of the profit? Well, no. Because operators like BlackBerry, Motorola, and Nokia operated at a loss last year, Apple and Samsung were able to make more than 100% of the profit, which is pretty insane.
While Samsung is leading in marketshare, they only took home 34% of the profits from the cellphone industry. Apple on the other hand has lower marketshare than Samsung, but double the profits with 69%, according to Cannacord Genuity’s estimates.
Writing for Cannacord, Michael Walkley had the following to say about Apple:
“We believe Apple’s value share of the handset market is even higher than our estimates…considering Apple’s dominant market share of the tablet market, as some Android OEMs such as Samsung and HTC include tablet sales in reported smartphone sales and profits.Given the current competitive dynamics, we believe Apple and Samsung will maintain dominant value share during Q1/13 with share gains for Samsung versus Apple expected in Q1/13.”
With the help of the iPhone 5 launch, Apple had it’s most profitable fiscal quarter ever in Q1 2013. Samsung is looking to answer the iPhone 5 with the launch of the Galaxy S IV that might make its debut this March.