Apple iPhone: 4% unit share of handset market and 52% of the profits

“Apple is estimated to have taken in 52 percent of the handset industry’s operating profits last quarter, despite only having a 4.2 percent global handset market share,” Neil Hughes reports for AppleInsider.

“Analyst T. Michael Walkley with Canaccord Genuity issued a note to investors on Friday in which he estimated Apple took more than half of the industry’s operating profits in the third quarter of calendar 2011,” Hughes reports. “That’s a 5 percent increase from the third quarter of 2010, when Apple’s share of industry operating profits was 47 percent.”

Hughes reports, “In fact, Apple’s growth in profit share came even as Apple lost market share. The iPhone dipped from a 5.4 percent market share to its current 4.2 percent as Samsung is estimated to have led the industry in smartphone shipments for the quarter, though its profits shrank.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]

11 Comments

    1. This was a typical headline grab for samsung, they knew that the iPhone sales would be at it’s ebb (right before the new model was announced) and so the stuffed their channel hard to “claim” the title as #1 maker (though in truth they really didn’t)
      It will come back to bite them (in spades) as their shipments drop precipitously this quarter (as a result of their distributers trying to sell all the crap ‘roid phones samsung stuffed them full to the rafters with)
      I don’t think the management at samsung is thinking (much, or, even at all) these days.

      1. Very good point, and I suspect you’re absolutely right. Meanwhile, in the developing world (mainly in India and the subcontinent), Samsung is making mad dash for the cost over value (quantity over quality, buy one get one free etc.) market penetration for the bragging rights route. In the longer run, I suspect, it would only lessen their brand value which they are working so hard to build up via slavishly imitating the top dog.

    2. I can appreciate that.

      It’s obvious that Apple is making lots of money – just visit any Apple store and try and buy a (sold out) iPhone! But to compare profitability among companies is usually vectored from a feeble one or two measures rather than among a more meaningful confluence of factors.

      To truly understand the kind of comparison you see on an EGG graph or a BACN curve, you’d need to digest a full LATTE analysis, and adjust for PBAJ.

    3. Correct; Samsung last official smartphone shiptment result was for Q2 and the figure was 20 million.

      After that they became shy to announce their shipments and now this speculated 27 million is just a guess by an analyst.

      While Samsung definitely sold more smartphones this quarter than Apple, 27 million figure is 40% growth quarter to quarter and this is really dubious. Results in USA and China, according to other analyst firm, do not support that jump in sales.

  1. Granted, the town I’m in has a high average income, but even so, the percentage of phones I see in the wild each day must be 30% iPhones.
    Out of dozens of friends with cell phones, only one has a non-Apple phone by choice.
    (One other friend has a company-provided non-Apple cell phone)

  2. Analyst T. Michael Walkley writes: a 5 percent increase. That is wrong. 5% increase of 47 is 49.35 (5% of 47 is 2.35!)

    He obviously means 5 %-points. If he wants to stick to %, then he should have written “some 10%”

    If he mixes that up, how reliable is the rest of his “analysis”?

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