Only Apple and Samsung are making money off smartphones

smartphone-profit-share

Chart via Business Insider

There are really only two players in the smartphone race: Apple and Samsung. According to new data from Canadian investment firm Canaccord Genuity, Apple and Samsung command a whopping 108% of smartphone profits combined.

The above chart is for the second quarter of 2014. Apple’s cash cow has been the iPhone for years, and it’s easy to see why; no one comes close to raking in the same kind of profit off hardware.

Apple’s profit dominance is astounding, and the 108% total doesn’t make sense mathematically at first glance until you consider that every other phone maker is losing money or breaking even at best. They bring negative numbers to the equation, which skews the total.

Canaccord’s last report showed that Apple and Samsung had 106% of profits combined, with Apple collecting 65% and Samsung only 21%. The numbers aren’t much different this time around except that Samsung is actually on the decline while the iPhone is on the rise.

Why? Samsung has been taking a pounding in key markets like China, where Xiaomi’s iPhone knockoffs reign supreme.

Mobile-revenue-year-on-year-growth

Most analysts aren’t predicting good growth from Samsung moving forward, which just means more money for Apple.

  • lrd555

    Samsung must love to have all those Google engineers giving them a free ride. And still their profits are down 25%! Looks like Apple’s going to win this war after all. Sweet revenge by Steve Jobs.

    • LeCookieMonster

      Revenge is best served cold, First Samsung falls, then google :3 HAHAHHAHAHAHA ! All in good time :)

      • TeeJay1100

        Revenge for what exactly? Samsung may or may not fail, if they do 5 more companies like them will rise.
        Google isn’t going anywhere, Android makes them little to zero profit. As long as consumers have laptops/smartphones etc, Google will continue to make millions off of ads which is their bread and butter.

      • PMB01

        Those 5 companies won’t make any profit though. All the profits will soon be with Apple.

      • TeeJay1100

        I think Apple should focus on making the iPhone a hit each release because it that doesn’t sale they won’t be doing very well.

      • PMB01

        It will continue to be a hit, regardless. Even “disappointing” iPhone releases sell more than all other flagships and still make Apple more money than any other smartphone maker.

      • TeeJay1100

        Apple makes the most profits, they don’t sell more than all other flagship’s combined.

      • PMB01

        I didn’t say combined, dummy. The iPhone, 5S or 5C, beats any other flagship in sales. That’s always been the case. The iPhone even beat the S5 in its first quarter on the market.

    • TeeJay1100

      The bigger fight really isn’t between Apple vs Samsung, the real fight is between Chinese/Korean manufactures who will invade the market to take ground from Apple. Their are many Samsung like companies on the rise and they are coming.

      Apple really only does the best in the US. But the pie is a lot bigger than US. Also, if for some reason the iphone doesn’t sell well or people vote with their pockets an don’t purchase iphones, Apple will be in a world of trouble. The smartphone arena is a market where anything can happen.

      • PMB01

        The Chinese companies are selling their phones with very little markup. If Samsung can’t stop their fall, the whole smartphone pie will belong to Apple.

      • TeeJay1100

        If Samsung, Apple, HTC, Lg etc everyone will lose. It will effect everyone. What makes you think Apple is immune? If Samsung loses, Apple loses.

      • PMB01

        What the hell are you mumbling? None of that made any sense at all. You have no clue what you’re talking about.

      • TeeJay1100

        Your nuts if you think if Samsung loses its all going to Apple. Apple will lose ground also.

      • PMB01

        You’re a moron if you think it’s going anywhere else. Also because of your horrid grammar.

  • Robin Turner

    You can’t realistically compare Apple and Samsung when the former have a monopoly on their operating system while the latter are competing in a very crowded Android ecosystem.

About the author

Alex HeathAlex Heath is a senior writer at Cult of Mac and co-host of the CultCast. He has been quoted by the likes of the BBC, KRON 4 News, and books like "ICONIC: A Photographic Tribute to Apple Innovation." If you want to pitch a story, share a tip, or just get in touch, additional contact information is available on his personal site. Twitter always works too.

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