Apple Takes 104% of All Smartphone Profits Following Galaxy Note 7 Recall

[MacRumors]

Apple accounted for over 100 percent of smartphone industry profits in the third quarter of this year, according to estimates published by BMO Capital Markets on Thursday.

Analyst Tim Long, quoted in the Investor's Business Daily, said Apple's staggering 103.6 percent profit share in Q3 2016 came largely as a result of significant losses posted by rival vendors including LG and HTC, and despite Apple continuing to shift fewer handsets year on year.

Based on units alone, Samsung accounted for 21.7 percent of all smartphones sold, with Apple coming in second with a 13.2 percent share. In terms of profits however, Samsung came a distant second to Apple, capturing only a 0.9 percent share.

Samsung ceded market share in smartphone shipments to Apple and Chinese vendors in the third quarter because of its Galaxy Note 7 troubles, Long said. He expects further share loss by Samsung in the current quarter. Apple captured over 100% of smartphone industry profits for the first time, thanks in part to Samsung's weaker results, Long said.

If accurate, the estimates represent the first time Apple has achieved smartphone industry profits of over 100 percent - an impressive number for a company owning only around 12 percent of the market.

According to the same report, Apple managed 90 percent profit share in the same quarter a year ago. However, this year Apple's iPhone 7 numbers were undoubtedly helped by Samsung's hugely damaging Galaxy Note 7 recall and discontinuation, which effectively took the South Korean company out of this year's flagship smartphone race, indicating Apple's profit share is unlikely to be sustained in the long term.

Despite the impressive numbers, Apple's recent third quarter financial results reported its first full-year revenue decline for Apple since 2001, although Apple expects to return to revenue growth in the holiday season on the back of sales of the iPhone 7 and iPhone 7 Plus.

Article Link: Apple Takes 104% of All Smartphone Profits Following Galaxy Note 7 Recall

 

[maflynn]

Not surprising due to Samsung's issues, though I hope they can keep improving with next years iPhone 8

 

[bpeeps]

And everyone wonders why the desktops are outdated.

 

[needfx]

when math barely makes sense

 

[Thunderhawks]

when math barely makes sense

Word hasn't gotten around that 100% is where it ends.

 

[BlargKing]

Meanwhile my brother just sold his iPhone 6 and used the money towards a Galaxy S7.

 

[dumastudetto]

The very best smartphones deserve all the profit.

This also does make Tim Cook's critics look pretty foolish.

 

[zhang96]

And 1000% of adapter profit.

 

[Mathias Denichi]

Its magical isn't it, just magical, and...pro. You're going to love it. We have exciting things in the pipeline.

 

[keysofanxiety]

Maths was never my strong point.

Could somebody explain this in simple terms? How it's calculated?

 

[AJ5790]

Meanwhile my brother just sold his iPhone 6 and used the money towards a Galaxy S7.

And? You're anecdote is not data.

 

[needfx]

Word hasn't gotten around that 100% is where it ends.

I am pretty sure this is how it was calculated

10^1.373=23.605
√ 23.605=4.858
4.858€ = 4.858$
sin(4.858) = -0.989
lg function Error() { [native code] } = NaN
acos(NaN) = NaN
104%

edit: @keysofanxiety

 

[840quadra]

Talk about moving the goal posts.

I hope fans of either camp don't get overly worked up over this. I am sure it is only a matter of time before another smartphone (could even be Apple) has some type of massive recall for safety issues. While I too love new phones every year, the pace is moving crazy fast, and the expectation for lightning fast innovation doesn't exactly mesh well with safety and proper testing.

 

[d0minick]

and this is why the MBPr is lackluster

 

[FatherJack1980]

And Samsung is apparently recalling 2.8 million washing machines: http://www.cnbc.com/2016/11/04/sams...ng-machines-over-risk-of-impact-injuries.html

Apple should enter the washing machine market; I'll bet they'll be able to sell lots and lots of dongles for washing machines! Could even get 104% of the washing machine market ....no matter though that it ends in 100% After all, everything Apple does is "magic"! Especially not including an lightning to usb-c adapter with their new and highly overpriced MacBook Pro's!!!

 

[AJ5790]

Maths was never my strong point.

Could somebody explain this in simple terms? How it's calculated?

If we are in the same industry and I make $100 but you lose $50 (or make a -$50 profit), the total profit across the entire industry (your "profit", and my profit) is $50, because your loss pulls the total profit for the industry backwards. So my percentage of the industry's profit is the profit I made divided by the industry profit times 100 (to convert from decimal to percent) or ($100/$50)*100=200%. Therefore I made 200% of the industry profit. In this case the iPhone is almost the ONLY phone that actually makes money. Samsungs profit share was 0.9% and HTC and LG lost money. That's what happens when you sell millions of devices at a loss.

 

[DanielDD]

Maths was never my strong point.

Could somebody explain this in simple terms? How it's calculated?

Pretty simple. Imagine Apple is making 104 billion in the smartphone market, another company 20 billion, and yet another company operating at a loss of 24 billion. Total profits in the smartphone market are 100 billion.

This basically means that there are Android manufacturers that are operating at a loss in order to get cheaper phones into the market

 

[Json81]

Maths was never my strong point.

Could somebody explain this in simple terms? How it's calculated?

Apple makes 10 dollars.
Samsung looses 2 dollars

Total profit is now 8 dollars.

Apples share of total profit is now 10/8 = 125%.

 

[d0minick]

The very best smartphones deserve all the profit.

This also does make Tim Cook's critics look pretty foolish.

how? when its best competitor has been completely recalled? wait until the pixel catches up in marketing. i own a 7Plus so ive obviously given to its success, but its not an accurate picture of what could of been an what will be accounted to cooks decisions

 

[AJ5790]

And Samsung is apparently recalling 2.8 million washing machines: http://www.cnbc.com/2016/11/04/sams...ng-machines-over-risk-of-impact-injuries.html

Apple should enter the washing machine market; I'll bet they'll be able to sell lots and lots of dongles for washing machines! Could even get 104% of the washing machine market ....no matter though that it ends in 100% After all, everything Apple does is "magic"! Especially not including an lightning to usb-c adapter with their new and highly overpriced MacBook Pro's!!!

Highly overpriced in your humble opinion.

 

[Thunderhawks]

I am pretty sure this is how it was calculated

10^1.373=23.605
√ 23.605=4.858
4.858€ = 4.858$
sin(4.858) = -0.989
lg function Error() { [native code] } = NaN
acos(NaN) = NaN
104%

edit: @keysofanxiety

Looks like they used the Excel Windows version.

 

[AJ5790]

Apple makes 10 dollars.
Samsung looses 2 dollars

Total profit is now 8 dollars.

Apples share of total profit is now 10/8 = 125%.

That was simpler than my explanation. Thanks. Not sure why this is so difficult to understand.

 

[HobeSoundDarryl]

Richest corporation getting richer. Hooray! All consumers everywhere should rejoice. Our fondest hopes are realized.

Maybe if we collaborate in this thread, we can figure out a way to grow that 104% to an even higher level? Why don't we all just send Apple a gift of $200 each for nothing? That should be a good start.

 

[i.mac]

I am pretty sure this is how it was calculated

10^1.373=23.605
√ 23.605=4.858
4.858€ = 4.858$
sin(4.858) = -0.989
lg function Error() { [native code] } = NaN
acos(NaN) = NaN
104%

edit: @keysofanxiety

Excellent!

 

[and 1989 others]

They've also increased their adapter profit by 104%, in a month.