Apple owns 70% of global smartphone profits, Samsung 25%, ‘other’ 5%

“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.]

Related articles:
Apple iPhone continues lead with 51.2% U.S. market share as Android users increasingly switch to iPhone – January 22, 2013
My Journey to the Dark Side: If this is what Android offers, Apple investors have nothing to worry about – January 19, 2013
Of myths and market share – January 18, 2013
How Apple is destroying Android from the inside out – January 18, 2013
Apple dominates smartphone OS satisfaction survey – January 18, 2013
The Apple double standard – January 18, 2013
Apple surges ahead of Google in mobile ads – January 18, 2013Google Android’s smartphone OS unit share lead may be ending soon – January 2, 2013
Why Apple’s iOS will win the platform war over Google’s Android – January 11, 2013
The Android engagement paradox – November 26, 2012
People buy more Android phone units and do less with them vs. Apple’s revolutionary iPhone – November 14, 2012
Apple rakes in 71% of the world’s smartphone profits – September 8, 2012
Apple kicks Google’s Android in the teeth; $1.05 billion jury award may really be worth $450 billion – August 27, 2012
Study: iPhone users vastly outspent Android users on apps, respond much better to ads – August 20, 2012
Apple utterly dominates mobile device market with 6% market share – and 77% of the profits – August 6, 2012
Game over, Android: Apple owns 84% of mobile gaming revenue – May 7, 2012
Apple takes lion’s share of mobile profits; Samsung unit sales estimates cloud market share picture – May 1, 2012
Apple remains #1 global smartphone leader; Samsung overtakes beleaguered Nokia for cellphone lead – April 27, 2012
Wealthy smartphone users more likely to have iPhones – April 2, 2012
Apple iPhone users most open to mobile payments – August 22, 2011
iPhone users smarter, richer, less conservative than Android phone users – August 16, 2011
Apple iPhone users spend significantly more on their credit cards than non-iPhone users – November 5, 2010
Study: Apple iPhone users richer, younger, more productive than other so-called ‘smartphone’ users – June 12, 2009

21 Comments

  1. 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!!!!!!!!!!!”

    1. 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

      1. 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).

        1. 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.

        2. 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.

  2. 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

  3. 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?

  4. 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.

    1. 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..

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.