“UBS Investment Research published a note on Thursday in which it estimated that Apple and Samsung will enjoy 90 percent of the mobile handset industry’s earnings before interest in taxes. In addition, the two companies are said to currently account for more than 50 percent of total industry revenues,” Neil Hughes reports for AppleInsider.
“Samsung and Apple’s share of profits are expected to grow as Samsung’s margins are projected to improve to the high teens,” Hughes reports. “Apple’s margins, meanwhile, lead the industry, allowing it to take 75 percent of mobile phone profits with just 9 percent of units sold.”
Hughes reports, “UBS has increased its estimated iPhone sales for Apple’s fiscal year 2013 to 156.5 million, up from its prior estimate of 149.5 million. The firm expects that Apple is preparing to build a record number of sixth-generation iPhones for its biggest product launch ever later this year.”
Read more in the full article here.
That’s 75% of the profits of all HANDSETS! I wonder what it is for smartphones. Just more proof that Android has to be given away to end up in people’s hands.
I remember the game Michael Jordan scored 69 points. One of his teammates said, “Michael and I combined for 71 points!” So, Apple at 75% and Samsung at 15% equals “both” at 90% is a little misleading.
I agree. Why even put Apple and Samsung in the same bucket? Like they are comparable… Apple profit is 5 times Samsung’s, I bet Samsung’s not 5 times better than the 3rd. Waiting for Horace Dediu at Asymco.com to publish his area charts that demonstrate the real difference between Apple and the copier, aka Samsung
That is one of the most confusing data heavy posts I’ve ever read. “Apple and Samsung earn 90%”, “Apple earns 90%”. Huh? And does Apple only have 9%? I guess, with 3rd world countries and their bag phones….
Yet on the blogosphere I’m always reading about how when some new Android smartphone is introduced that Apple is in trouble or feeling pressure to lower prices or add some features to the iPhone. The analysts fear that because the iPhone won’t own the highest market share in China, Apple will lose out. They clearly don’t understand that Apple doesn’t need anywhere near the highest market share to be successful. Apple only needs to build quality products for those that can afford to purchase them. There will be enough consumers to keep Apple financially successful for at least the next few years.
Because Apple cultist dorks are willing to pay over the odds for stale technology that’s a year old in the 4S.
Ummmm… Oh never mind. I was going to offer up a retort,but then I realized, you’re just not worth it.
+2 thanks for saving me the effort.
en
What is wrong with you man? Don’t change your meds without talking to a professional.
Or is your post ?
So my question has always been:
What happens when Apple reaches 15% of the cell phone market?
Lots of headroom for market share, not so much for profit. Is it worth pursuing the remaining 91% market share for the remaining 25% of profit?