Apple And Samsung Grabbed 103% Of Cellphone Profits In 2012

appleprofitswithsamsung2012

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.

  • Gadget

    Oh boy, here we go. Apple Insider boards has wannabe accountants lobbing bombs at each other debating the validity of having 103% of the profits.

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Buster HeinBuster Hein is Cult of Mac's Senior News Editor and lives in Phoenix, Arizona. Twitter: @bst3r.

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