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

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.

 

Contact Us for News Tips, Corrections and Feedback

Create a new thread in the US News comments forum about this subject
This thread is closed for comments
33 comments
    Your comment
    Top Comments
  • 106% = Math fail
    28
  • I'm not accepting the explanation that the reason why it's 106% is because of other companies' losses. 100% makes up the profits of all earnings, not counting losses, that's why we say 'earnings'. There's no way you could put other companies' losses on top of Samsung's and Apple's earnings and call it 106%.
    25
  • My thoughts exactly
    23
  • Other Comments
  • 106% = Math fail
    28
  • My thoughts exactly
    23
  • Oh ... and I thought that Jean-Claude Van Damme was insane with his 1+1= 11 theory ;-)
    14