“Together, Apple Inc. and Samsung Electronics Co., Ltd. raked in 95 percent of the profits that were made in the world’s mobile phone market, according to a report issued by Counterpoint Technology Market Research,” Michelle Jones reports for ValueWalk. “The research conducted by Counterpoint Technology Market Research indicated that Apple Inc. brought in 70 percent of the world’s mobile phone profits in 2013 [sic. Means 2012 – MDN Ed.], while Samsung Electronics Co., Ltd. brought in 25 percent of the profits.”
“Nokia Corporation was a distant third with just 2 percent, while the remaining 3 percent was split among the other 300 (plus or minus) companies that sell mobile phones,” Jones reports. “The research firm said Apple Inc. had just 51 percent of the industry’s profits in 2011, and Samsung Electronics Co., Ltd. had 15 percent the same year.”
Read more in the full article here.
[Thanks to MacDailyNews Readers “DogGoneToo” and “MacMan1984” for the heads up.]
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Apple overtakes Samsung as top U.S. mobile phone vendor for first time in Q4 2012??
Soon there will be headline “this news shows Apple faces limited growth as it has taken majority of mobile phone profit , APPLE DIVED x% today!!!!!!!!!!!”
Apple is chasing after the wrong measure of success in the company’s goals. Everyone knows that Wall Street prefers market share to profits. It’s far better to have 90% market share and 10% profits than 10% market share and 90% of the profits.
Why? Well, I’m not really sure why, but I’m sure Wall Street has its reasons. Everyone has always said that insects will be around a lot longer than humanity, so it must have something to do with their greater physical numbers and not brainpower or cash-making ability. Anyway, Apple is doomed and Samsung is the new smartphone king.
/s
Because wall street understands that you can’t keep profit margins that high for that long. Eventually, things become commodities. Margins drop, and Apple will be affected far more by lower margins than Samsung will.
Apple is adding money to its money pile, Samsung is using that money to buy market share (developing more phones at lower prices).
Yeah, the market sure understands Apple. iPods and Macs are commodities and sell for minimal profit after years… Oh no, that’s not right. Apple’s still selling stuff at premium prices despite dominating for years. Wall Street (and Apple’s competitors) don’t understand how that’s possible. Why would anyone pay for $150 iPod when there are $15 MP3 players with similar specs? Why would anyone pay $1100 for a MacBook Air when you can buy a 15″ Win8 laptop for $299?
They just don’t get Apple. They think phones will be like everything else, but Apple doesn’t play that game. They always sell premium stuff at premium prices for premium profits.
It will take Wall Street a while to see the, but when they do, the stock will be a rocket like no one has ever seen.
No, ApplePi. Wall Street *thinks* you can’t keep profit margins that high for that long. It doesn’t “know” anything.
Are Apple’s computers commodities? Do you realize that Apple has kept profit margins “that high” for decades? Wall Street is full of shit.
AAPL is down 6.05, 1.3% now. Keep release the good news, and AAPL will continue to go down.
So who is winning ?
That question is easy….
The one with the goofiest TV commercial. Afterall, that is what counts, right??
/s
“There’s no chance that the iPhone is going to get any significant market share. No chance.”
Does this warrant an investigation into the possible break up of those two companies in order to create fair competition?
When figures such as that are bandied about, one has to think about other situations that are under greater scrutiny for having similar figures but on the opposite side, that of product as opposed to profit. Have a look at this scenario and tell us what you think?
http://www.sltrib.com/sltrib/money/55744725-79/abi-beer-modelo-anheuser.html.csp
Headlines:
1. SAMSUNG PLACES SECOND IN CELL PHONE PROFITS
2 APPLE PLACES SECOND FROM THE BOTTOM IN CELL PHONE PROFITS
MDN: headline says Apple took 70 percent of smartphone profits…story says mobile phone profits.
The headline refers to smartphone profits. The article refers to mobile industry profits. Which is it?
MDN
Please clarify. Your headline says “smartphone profits” but the article appears to be saying “mobile Phone profits’ which includes ALL phones.
The fact that Apple makes 70% of the cellphone profits globally will likely have minimal impact on analyst’s view of the company. Profits do not seem to be an important metric to the new breed of “investors”, just look at Amazon’s PE as an example. The new “investors” are not investing in companies, they are microtrading arbitrarily based on “market sentiment”. The micro traders are all about emotion and manipulation, so expect some emotional spin regarding Apple. Don’t expect the stock market to go forward based on “Fundimentals” when the big money is being made on micro trades during emotionally driven price swings that are easily orchestrated by the emotional manipulation of the market by analysts and “news” reporters with their un-named sources. Unfortunately for Apple stock, people either love or hate Apple, so it is easy to emotionally manipulate the market, and easy for computer algorithms to pump money out of microtrades in Apple stock. In that microsecond world, Apple’s fundamentals, it’s profits, it’s market share, and it’s long term potential are irrelevant.
Why is micro trading legal? Micro trading can clearly do damage, but can it contribute any good what so ever to the socioeconomic system that corporations and stock ownership is based on?
This is actually a bit unfortunate for Apple. Not the 70%, but Samsung having 25%. Apple does best against a large field of fairly evenly matched competitors, not (as with WinTel) against one giant competitor that sucks the wind out of everyone else. That situation leads to the competitor blatantly copying Apple, then skirting the law via whatever means until it takes out everyone _but_ Apple, then hurting Apple in the long run. What a shame.
What they all fail to realize is that once Samsung sells a phone they have their money and don’t get any more – When Apple sells a phone they get their money and then people start buying apps and music and movies so Apple keeps making money – Samsung doesn’t get any more money..
No matter. Dow Jones at an all-time high. Google, Intuitive Surgical, Priceline surging like investors just can’t get enough of a good thing. Where’s Apple? Down because of investor fears that Apple will be put out of business when all carrier subsidies are ended this year. Oh, well. Some things never change. Hopefully, that $137 billion will keep operations running for a few weeks before Apple headquarter’s power is turned off.
Since Apple only makes smartphones isnt the fact that they took 70% of the entire mobile phone market even better?
70%? Wait sec. Really? I can’t believe this number. Actually android share 70% of smartphone market. How can apple get profit 70% of it even though they keep high price strategy. I think that this is bullshit. Somebody might manipulate data. Even though MDN tries to get apple higher, it seems to be late because apple share gradually goes down since last year.
This is the most hilarious article I have read all year. Fact: Samsung owns 70% of the global market and is also the leading mobile phone manufacturer in the U.S. Where did all these false statistics come from? lol