According to the latest research from Strategy Analytics, global Android smartphone profits reached US$5 billion in total during the first quarter of 2013. Samsung dominated the iPhone wannabe market with 95 percent share of all Android smartphone profits.
Neil Shah, Senior Analyst at Strategy Analytics, said in a statement, “We estimate the global Android smartphone industry generated total operating profits of US$5.3 billion during Q1 2013. The Android platform accounted for 43 percent share of the entire smartphone industry’s operating profits, which reached US$12.5 billion worldwide in the first quarter of this year.”
Woody Oh, Senior Analyst at Strategy Analytics, added, “We estimate Samsung’s Android smartphone shipments generated US$5.1 billion of operating profit worldwide in Q1 2013. Samsung captured a huge 95 percent share of all Android smartphone industry profits. An efficient supply chain, sleek products and crisp marketing have been among the main drivers of Samsung’s impressive profitability. LG followed in second place and took 3 percent global profit share. LG delivered a small profit during the quarter, but it currently lacks the volume scale needed to match Samsung’s outsized profits.”
Neil Mawston, Executive Director at Strategy Analytics, added, “Samsung is, for now, the undisputed king of the global Android smartphone industry. We believe Samsung generates more revenue and profit from the Android platform than Google does. Samsung has strong market power and it may use this position to influence the future direction of the Android ecosystem. For example, Samsung could request first or exclusive updates of new software from Android before rival hardware vendors.”
Exhibit 1: Global Android Smartphone Profit Share in Q1 2013
Numbers are rounded. The data-table includes Android smartphone hardware profit only. It does NOT include any other operating systems. The data-table does NOT include tablets or any other devices. Profit is defined as operating profit.
The full report, Samsung Captures 95 Percent Share of Global Android Smartphone Profits in Q1 2013, is published by the Strategy Analytics Wireless Smartphone Strategies (WSS) service, details of which can be found here.
Source: Strategy Analytics
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What profits?
Samsung builds devices for itself, Google, Kindle and was also going to produce Home for FaceBook.
There is no SURPRISE at all of all the Android manufacturing plants that SAMSUNG profited the most from its line COMPARED to LG and HTC etc.
However, compared to APPLE, Samsung still profited much less and still is lower in market share.
Look for Samsung to be quietly developing its own mobile OS, with the same (copied) look and feel of Android, then opening a Samsung specific App Store.
Google’s Android effort goes tits up, leaving Samsung and Apple as the only two players in mobile.
They’ve been working on that for quite some time. They’re not stupid even if they do copy.
WOW, just WOW. How great Samsung is doing with its smart phones… Its taking All the profit………. er from its segment.
I find the article lacking. Severely lacking.. No mention of iPhone, just that 60% of the world wide profit goes —– er—– somewhere else. Lets not talk about that. It does not matter…
Its like when an article talks “shipping market share” and sales. You know right off the bat that the anal…..yst has no clue what they are talking about. Lots of numbers and exact percents but no real clue.
Hey, the Titanic was a great ship. A marvel of its time. It still is…… but its doing so at the bottom of the ocean.
If the damage had of been limited to lower down so the water proof decks could have contained the damage,….. well…. that would have been a different story.
Just a thought.
By this same methodology, Apple took 100 percent of global iOS smartphone profits in Q113. There, take that samdung!
So, they filtered out all the real money made by Apple and any tablet or e-reader to get 95% of the tiny sad pile of cash that Apple did not take.
Not ready to tell the rest of the story because Samsung didn’t pay you to wright about that.
You’re wright.
this would be a great day to sell GOOG for AAPL – perhaps the best every day to make this trade.
Well, did you? I don’t own any GOOG, but if I did I’d certainly be easing out of it at this price. There’s more money to be made in GOOG but it should get a little cheaper before too long. It will take a breather. Taking some of that money from GOOG and putting it in AAPL around $400 seems reasonable.
I think the lawsuit with Apple was a bad thing. All Apple did was make Apple look like big brother and the public like Samsung. Only thing that explains the sales.
The effects of the lawsuit haven’t taken place yet. Samsungs MO was this: copy (blatantly) Apples design, look and feel, and functionality (because it works), and ride the wave from there. That’s the only thing that differentiated Samsung from the other Android hardware makers- the others didn’t copy Apples property. All of the other handset makers, including Samsung, gave away phones, sold their souls to Google and the carriers, and pushed high volumes of product. Samsung rose to the top thanks to Apple.
This is a business model that’s not sustainable. Without good leadership, Samsung will never be able to be a leader- they will always have to wait for someone else to create it first. They’ve made a ton of money with their most recent foray into the smartphone market, but as the S4 has shown, they don’t know how to innovate.
For future reference, if Apple succeeds with it’s many patent lawsuits, that will hurt companies like Samsung even more simply because the risks and costs of litigation will be too high, but that precedent has yet to be set. If Apple loses, then the likes of Samsung will have free reign to copy whatever they want and make plenty of money doing so. We’ll see what happens.
In all, the biggest loser here is Google- they pumped all of this effort into R&D for Android (to make it function and look like iOS), and they’ve got nothing to show for it except market share. I think Samsung has definitely proven that the money is in the hardware- thank you Steve Jobs!
So was this Google’s plan? To provide Samsung with a windfall of HUGE profits and basically take over Android for all intents and purposes while not leaving much on the table for themselves? BWAHAHAHA!!!! Great job Eric T. Mole & Silent Larry!
It’s more like GOOGLE is stuffed by Alibaba and the 40 thieves. One smart thief robs their master and ran away with
the loot all the way to South Korea.
Looks like GOOG bought the wrong handset maker.
But then, I don’t think they could have digested Samsung anyway…
And Apple makes 100% of iPhone profits.
ScamDung must be lying about their activation rates…as always. If I MUST buy and AndyBot OS phone, it’s gotta be the Sega Tokio. At least Sega has been apart of my childhood, and I want to support them in any way I can. Though the recent Sonic games have not been so good since the Dreamcast.
do the math morons, Apple’s profit on smartphones was 3 billion more than Samsungs for the quarter. If you look at apple financials for the same time period (Q2 2103) even the page hit trolling new media douchebgs can figure that out.
You are right. Those greedy thieves at Samsung are doing Satan’s bidding. Soon, every device will have Freemason OS on it, and you can kiss freedom goodbye. RIP America (1776-2013)
Give us a break. The founding fathers were Masons from the get-go. America IS a secret society, complete with acolytes, levels of ascension, and masters. It is what it is, not what you fear it may become.
As far as Samsung’s Android Smartphone (Oxymoron, I know) profits go, don’t forget to subtract that stupendous advertising budget.
Word has it they spent $2 billion in advertising and bribes.