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Apple, Samsung Accounted for 103% of 2012 Handset Profits

By - Source: Forbes | B 36 comments

Two firms accounted for 101 percent of Q4 profits and 103 percent for 2012.

Apple and Samsung accounted for more than 100 percent of handset profits generated during 2012.

According to Canaccord Genuity analyst, T. Michael Walkley, the two technology titans generated 101 percent of profits during last year's fourth quarter and 103 percent during the calendar year.

In order to achieve a number that's larger than the whole, the 103 percent figure is made possible after the loses made by several other smartphone vendors is taken into account. Nokia, Sony and Motorola are some of the many technology firms who suffered quarter-on-quarter losses due to the dominance of Samsung and Apple.

"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," Walkley said.

"For Q1/13, we believe Apple's softer-than-anticipated March quarter guidance was due to Apple ramping supply of the iPhone 5 during the December quarter to slightly higher than anticipated inventory levels combined with the potential for an earlier-than-usual product transition during 1H/C2013 for the iPhone," he added.

The analyst, however, stressed that the drop in Apple's stock price is a good opportunity to invest. He believes the firm's "industry-leading software and its leading hardware expertise" will result in solid multi-year product cycles for its flagship devices.

Samsung is believed to have lost overall market share to Apple during the fourth quarter, but the firm remained the top-selling handset maker with a 24 percent share, a decrease from 25.6 percent during 2012's third quarter. It was also believed to have been the leading smartphone manufacturer with a 28.9 percent share during Q4, which is a drop from 32.3 percent in the preceding quarter.

That said, Walkley expects Samsung's market share to propel during 2013's first quarter due to the expected unveiling and launch of the Galaxy S4 by the end of March. The company itself sells about a quarter of all mobile phones worldwide.

Samsung's Q4 2012 commercial performance saw the company generate profits of $6.6 billion (Q3 profits were $7.4 billion), while Apple made a profit of $13.1 billion.

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  • 20 Hide
    Anonymous , February 7, 2013 6:10 AM
    Is this some sort of joke?
  • 14 Hide
    s3anister , February 7, 2013 6:10 AM
    Quote:
    Two firms accounted for 101 percent of Q4 profits and 103 percent for 2012.

    Forgive me if I'm missing something here, but I thought it wasn't possible to have more than 100% profit in a given sector. Typically, a manufacturer has a portion of the total revenue for that quarter/year being represented as a percentage of a number or ratio as a fraction of 100... Obviously 100 would be the maximum because it represents the total profit from all manufacturers in that industry sector.
  • 14 Hide
    frombehind , February 7, 2013 6:13 AM
    Ughh... Tom's >_<

    You guys are embarrassing yourselves here
Other Comments
  • 20 Hide
    Anonymous , February 7, 2013 6:10 AM
    Is this some sort of joke?
  • 14 Hide
    s3anister , February 7, 2013 6:10 AM
    Quote:
    Two firms accounted for 101 percent of Q4 profits and 103 percent for 2012.

    Forgive me if I'm missing something here, but I thought it wasn't possible to have more than 100% profit in a given sector. Typically, a manufacturer has a portion of the total revenue for that quarter/year being represented as a percentage of a number or ratio as a fraction of 100... Obviously 100 would be the maximum because it represents the total profit from all manufacturers in that industry sector.
  • -4 Hide
    frombehind , February 7, 2013 6:12 AM
    how the hell can you have anything more then 100% of a total? that does not make any sense... a 103% INCREASE makes sense, but unless the laws the laws of physics and common sense have changed while I was not looking... you jut cant have more then EVERYTHING (100%)
  • 14 Hide
    frombehind , February 7, 2013 6:13 AM
    Ughh... Tom's >_<

    You guys are embarrassing yourselves here
  • 7 Hide
    dthx , February 7, 2013 6:21 AM
    s3anisterForgive me if I'm missing something here, but I thought it wasn't possible to have more than 100% profit in a given sector. Typically, a manufacturer has a portion of the total revenue for that quarter/year being represented as a percentage of a number or ratio as a fraction of 100... Obviously 100 would be the maximum because it represents the total profit from all manufacturers in that industry sector.

    You're right, but it's Zak... and he may still be in keynote mode where everything Apple does is always 4x or 8x faster, 48% thinner, and 34% lighter. In his magic world, the universe is not finite and Apple will increase his market share (which is already far over the 100%) and make his sales volume grow exponentially and forever...
  • 7 Hide
    jerm1027 , February 7, 2013 6:22 AM
    frombehindUghh... Tom's >_<You guys are embarrassing yourselves here

    "The Authority of Tech"
    Can't do simple math.
  • 14 Hide
    builder4 , February 7, 2013 6:27 AM
    While it would not be possible to have more than 100% of the total revenue, it IS possible to have more than 100% of the total profits for a sector.
    Imagine company A made $1,000,000,000 profit in a quarter, and company B made a LOSS of $100,000,000. Assuming there were only 2 companies, the sector would have had total profits of $900,000,000. This would mean company A would have made 111% of the total profits of that sector for that quarter.
  • 6 Hide
    C26000 , February 7, 2013 6:30 AM
    Yes it's possible to have more than 100% if the other companies have losses
  • 2 Hide
    frombehind , February 7, 2013 6:31 AM
    builder4While it would not be possible to have more than 100% of the total revenue, it IS possible to have more than 100% of the total profits for a sector.Imagine company A made $1,000,000,000 profit in a quarter, and company B made a LOSS of $100,000,000. Assuming there were only 2 companies, the sector would have had total profits of $900,000,000. This would mean company A would have made 111% of the total profits of that sector for that quarter.

    hmm, kinda makes sense i guess... i dunno financial math is all funky ^.^
  • 6 Hide
    Benthon , February 7, 2013 6:33 AM
    Financials people. If someone else posts a loss (Like Blackberry in 2012?) then making up their revenue loss would go over 100%.
  • -5 Hide
    tokencode , February 7, 2013 6:48 AM
    Apple has 147% approval rating, Apple makes 115% profit.. come on Zak, at least you prop up apple using actual math....
  • 0 Hide
    neon neophyte , February 7, 2013 7:03 AM
    invest in a company thats stock keeps dropping while they remain completely incapable of creating anything new? while apple users flock to other avenues and people are more and more disgusted by apples business practices. sorry timmy, you are coasting on legacy and i would have to be a fool to bet on you.
  • 0 Hide
    _Cosmin_ , February 7, 2013 7:08 AM
    I think Zak just found a bug in the calculator application on his shity iphone... or a new math theory which adding apples with anything else give 103% no matter what
  • 0 Hide
    nieur , February 7, 2013 7:30 AM
    I can't get it (103% profit). I am not financial expert
    I checked on the Forbes(source) site there is also written as 103%
  • 1 Hide
    _Cosmin_ , February 7, 2013 7:31 AM
    C26000Yes it's possible to have more than 100% if the other companies have losses


    No it`s not. Profit are the money you remain with after paying everything else involved in production and selling the product and therfore cant be negative! Losses are when you invest money in product manufacturing and you cant sell it. They are two different things...
    When you loose all your money and you file for bankruptcy i dont think you will be happy if they would consider this a profit...
  • 0 Hide
    _Cosmin_ , February 7, 2013 7:43 AM
    builder4While it would not be possible to have more than 100% of the total revenue, it IS possible to have more than 100% of the total profits for a sector.Imagine company A made $1,000,000,000 profit in a quarter, and company B made a LOSS of $100,000,000. Assuming there were only 2 companies, the sector would have had total profits of $900,000,000. This would mean company A would have made 111% of the total profits of that sector for that quarter.


    As Merriam-Webster define the profit is "the excess of returns over expenditure in a transaction or series of transactions; especially : the excess of the selling price of goods over their cost"

    So your calculations are WRONG! If firm A makes profit 100k $ and B does not make profit then firm A has 100% profit in that market share! Why did you extract loses of firm B from profit of firm A? They are different firms with diferent owners... havent you learn in school? Do not mix apples with oranges !
  • 0 Hide
    calmstateofmind , February 7, 2013 7:46 AM
    C26000Yes it's possible to have more than 100% if the other companies have losses


    I'm sorry, but it's not possible. There is profit, and then there's what's called markup. Zak has mistakenly confused the two with each other.
  • 1 Hide
    killerclick , February 7, 2013 9:28 AM
    Whatever, stop nitpicking, you know what he meant. Apple and Samsung are doing really well, everybody else is struggling. Next topic.
  • 0 Hide
    mr_tuel , February 7, 2013 9:49 AM
    Whoa did someone forget basic statistics? You can't have more than 100% of anything in the context of proportions of a whole. No one can sell more than 100% of the total phones sold or have more profit than there was. That is like saying I sold more apples in the market than were being sold in the market. Doesn't make sense does it? How valid are Tom's video card comparisons when basic statistic principles are being ignored?
  • 0 Hide
    pacomac , February 7, 2013 10:36 AM
    builder4While it would not be possible to have more than 100% of the total revenue, it IS possible to have more than 100% of the total profits for a sector.Imagine company A made $1,000,000,000 profit in a quarter, and company B made a LOSS of $100,000,000. Assuming there were only 2 companies, the sector would have had total profits of $900,000,000. This would mean company A would have made 111% of the total profits of that sector for that quarter.


    Finally, someone with a bit of common sense!
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