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Old May 3, 2012, 09:46 AM   #1
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Apple and Samsung Claim 99% of Profits Among Top Mobile Phone Vendors




Asymco's Horace Dediu has released his data on operating profits among the eight top mobile phone vendors for the first quarter of 2012, finding that Apple and Samsung together now hold 99% of the profits with Apple representing the lion's share at 73%. Apple's share was down slightly from 75% in the previous quarter, but Samsung boosted its share from 16% to 26% to shut out nearly all other vendors.




Among the other six vendors, only HTC managed to eke out a profit, taking 1% of the total industry profits. Research in Motion, LG, Sony Ericsson, Motorola, and Nokia each failed to turn a profit on their handset businesses.




The rise of Apple and Samsung at the expense of all of the other major vendors comes as the mobile phone market continues to expand and more expensive smartphones make up an increasing percentage of overall mobile phone sales. Consequently, Apple and Samsung share growth is coming even as the total pool of profits is surging. Over the past two years, profits taken by these top eight vendors has risen from $5.3 billion to $14.4 billion, driven in large part by carrier subsidies worth hundreds of dollars on each of the growing number of smartphones sold.

Article Link: Apple and Samsung Claim 99% of Profits Among Top Mobile Phone Vendors
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Old May 3, 2012, 09:48 AM   #2
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Apple has a MONOPOLY of profits. OMG! Let's sue Apple somehow so they don't take so much money!
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Old May 3, 2012, 09:52 AM   #3
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As much as I don't like the current Nokia or Motorola phones, there needs to be more competition. Having Apple and Samsung covering most of the market between them is not a good thing for anyone.
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Old May 3, 2012, 09:54 AM   #4
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Somewhere in 2010, we heard Apple has more than half of the industry profits (50%). Last year, we heard that Apple had approximately two-thirds of the industry profits(66%).

Now we hear that Apple holds approximately three-fourths of the industry profits, i.e. 75%.

Surreal.

And oh! Android's winning!
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Old May 3, 2012, 09:57 AM   #5
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Where's Motorola

It surprises me that Motorola doesn't have a bigger slice of this. They barely show up (MOT in green) at the bottom of the second graph.

I see lots of ads and chatter about their phones, but maybe 1) there's not selling many or 2) they're not making much money on what they sell.
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Old May 3, 2012, 10:02 AM   #6
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So long as this continues, it doesn't matter what Android's market share is.
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Old May 3, 2012, 10:03 AM   #7
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Originally Posted by caseyh View Post
It surprises me that Motorola doesn't have a bigger slice of this. They barely show up (MOT in green) at the bottom of the second graph.

I see lots of ads and chatter about their phones, but maybe 1) there's not selling many or 2) they're not making much money on what they sell.
Motorola is under water - that's a loss :/
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Old May 3, 2012, 10:05 AM   #8
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Wow, what happene to RIM at the end there? Oh dear!
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Old May 3, 2012, 10:06 AM   #9
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Originally Posted by shaunp View Post
As much as I don't like the current Nokia or Motorola phones, there needs to be more competition. Having Apple and Samsung covering most of the market between them is not a good thing for anyone.
Well then the nokias and motos of the world should try building something that someone wants to buy.
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Old May 3, 2012, 10:06 AM   #10
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Quote:
Originally Posted by dethmaShine View Post
Somewhere in 2010, we heard Apple has more than half of the industry profits (50%). Last year, we heard that Apple had approximately two-thirds of the industry profits(66%).

Now we hear that Apple holds approximately three-fourths of the industry profits, i.e. 75%.

Surreal.

And oh! Android's winning!
When you have a 30%-45% margin profits are easy to make.
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Old May 3, 2012, 10:06 AM   #11
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Hopefully Apple can bury the competition and end the smartphone wars. There is only room for one!
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Old May 3, 2012, 10:07 AM   #12
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What would actually be funny is if there was a chart put together mapping the numbers of post regarding iOS devices, legal issues, and Mac computer products. The mac computer column would be dwarfed by the legal issues and iOS columns. In relation to this chart, iOS and legal is to Apple and Samsung as the Mac computer is to Nokia.
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Old May 3, 2012, 10:08 AM   #13
Eduardo R.
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It's truly incredible how a company that dominated so much of a market for a relatively long time, such as Nokia and RIM, can fall so rapidly into the abyss in a few years only. Likewise, it's amazing how the iPhone has risen to glory so fast. It's an amazing cel. phone, after all.

Great for Apple and their profits!

Last edited by Eduardo R.; May 3, 2012 at 10:17 AM.
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Old May 3, 2012, 10:08 AM   #14
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So whats a 5 way split of 1%....
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Old May 3, 2012, 10:09 AM   #15
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Quote:
Originally Posted by dethmaShine View Post
Somewhere in 2010, we heard Apple has more than half of the industry profits (50%). Last year, we heard that Apple had approximately two-thirds of the industry profits(66%).

Now we hear that Apple holds approximately three-fourths of the industry profits, i.e. 75%.

Surreal.

And oh! Android's winning!
Android/Google are not a manufacturer. Therefore these graphs are irrelevant to them since these graphs show profit/loss from the manufacture and sale of phones. Effectively Google/Android bypass the risk of loss here by having the suckers you see on the graph make the phone for them. What this does prove, is that Apple have a cheaper manufacturing process and/or can command a higher premium.

Quote:
Originally Posted by camnchar View Post
So long as this continues, it doesn't matter what Android's market share is.
Again - not relevant to current discussion. Android earns google cash through other means - i.e. advertising.
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Old May 3, 2012, 10:10 AM   #16
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Motorola will start doing well if/when Google develops them into the flagship manufacturer of quality Android devices, and becomes a true competitor with Apple on the iOS front.

Keep all the awful third party Android devices on the market, but make one tablet and 2-3 phones, and actually support them with updates. Then I might consider going back to Android.
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Old May 3, 2012, 10:11 AM   #17
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Well then the nokias and motos of the world should try building something that someone wants to buy.
I couldn't agree more. But having just two major suppliers isn't a good thing either
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Old May 3, 2012, 10:13 AM   #18
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Again - not relevant to current discussion. Android earns google cash through other means - i.e. advertising.
I'm certain Google has some sort of profit-sharing mechanism with the companies selling phones based off the Android operating system. Why wouldn't those companies report that profit as part of the big picture? I think this graph is VERY relevant.
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Old May 3, 2012, 10:14 AM   #19
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Let's recall to stupid people who don't know how to read chart that this is not the "Market Share" chart, only profit.

All this says is not that Apple sells the most (or it would mean 75% of mobile phone users in Africa or Thailand have iPhones); only that they make the most profit.

I know it's rather stupid and simple, but believe me, some people are even more stupid and simple...so I had to make it clear
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Old May 3, 2012, 10:15 AM   #20
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Originally Posted by Mattie Num Nums View Post
When you have a 30%-45% margin profits are easy to make.
Some may be thinking that achieving 30-45% margins on products that are better made and more functional than the competition yet still cost about the same is “easy.”

Tim Cook would disagree So would all those other companies.
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Old May 3, 2012, 10:15 AM   #21
The Mercurian
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Originally Posted by aarond12 View Post
I'm certain Google has some sort of profit-sharing mechanism with the companies selling phones based off the Android operating system. Why wouldn't those companies report that profit as part of the big picture? I think this graph is VERY relevant.
Well perhaps they do. But I doubt its a profit share - more likely a licence.

In any case - free money for google. The manufacturers are taking all the risk here and getting hammered as you can see in the graphs. Google don't make any loss from this.
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Old May 3, 2012, 10:17 AM   #22
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Originally Posted by The Mercurian View Post
Android/Google are not a manufacturer. Therefore these graphs are irrelevant to them since these graphs show profit/loss from the manufacture and sale of phones. Effectively Google/Android bypass the risk of loss here by having the suckers you see on the graph make the phone for them. What this does prove, is that Apple have a cheaper manufacturing process and/or can command a higher premium.



Again - not relevant to current discussion. Android earns google cash through other means - i.e. advertising.
Google makes more money from ios than android. For how many android phones are sold its not a big money spinner at all in its current form
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Old May 3, 2012, 10:18 AM   #23
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I couldn't agree more. But having just two major suppliers isn't a good thing either
No it's not, but what can we (or apple and Samsung) do? The other guys either build worthwhile products or they don't. We can hope they do, but we can't make them.
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Old May 3, 2012, 10:19 AM   #24
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As much as I don't like the current Nokia or Motorola phones, there needs to be more competition. Having Apple and Samsung covering most of the market between them is not a good thing for anyone.
Two can be enough to ensure good competition and choice. Look at Boeing and Airbus. Airlines have lots of different planes to choose from, and the two companies are always trying to top the other.

Samsung is releasing a lot of interesting products, including the new Galaxy model today. Apple undoubtedly will be making some big improvements to the iPhone this year.
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Old May 3, 2012, 10:20 AM   #25
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Hopefully Apple can bury the competition and end the smartphone wars. There is only room for one!
That would be good for no one. Apple needs to be pushed even harder i think so we as consumers can benifit. Otherwise we would be waiting for the 3gssss
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