Apple, Samsung Control 106% of Handset Industry's Profits

Technology giants capitalizes on losses by competitors.

Samsung and Apple are both generating more than 100 percent of the handset industry's earnings.

According to a report from Canaccord Genuity, the two technology giants are responsible for 106 percent of the industry's profits. How exactly can two companies exceed the 100 percent mark, though? Well, it's possible when other competitors such as Research in Motion, Nokia, Motorola and Sony posted operating losses.

"With Samsung extending its overall smartphone and Android market share combined with Apple's strength in high-end smartphones, competing smartphone [original equipment manufacturers] continued to struggle to compete with these dominant smartphone OEMs," Canaccord analyst T. Michael Walkley said.

The two companies have now dominated more than 100 percent of the industry's profits for the second quarter in a row, Walkley added. During the second quarter, Apple and Samsung boasted a 108 percent share.

Walkley predicts that Apple generated 59 percent of the industry's operating profits during 2012's third quarter. Samsung, meanwhile, was responsible for 47 percent of the profits, representing a 10 percent increase from 37 percent in the second quarter. The analyst expects Samsung to maintain its leading market share position during the fourth quarter and beyond.

Samsung recently announced quarterly profits of $7.4 billion, spearheaded by Galaxy S3 sales. Apple, meanwhile, posted profits of $41.66 billion during the fiscal 2012 year.

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