Cannacord: Apple takes 53% of smartphone profits, Samsung has 50%, remainder lose money

“The latest data from Cannacord analyst Michael Walkley shows that Apple took 53 percent of smartphone profits in the second quarter, down from 57 percent in the first quarter, and 69 percent in 2012,” Neil Hughes reports for AppleInsider.

“Samsung, meanwhile, has seen its value share steadily grow, from 34 percent in 2012, to 43 percent in the first quarter of 2013. Now, in the second quarter of the year, Samsung took 50 percent of the smartphone industry profits, according to Walkley’s research,” Hughes reports. “As has been the case in the past, Apple and Samsung are still estimated to account for more than 100 percent of the smartphone industry’s profits. That’s because all other companies are either break-even, or they experienced losses.”

Hughes reports, “Nokia, HTC, LG and Sony Ericsson all saw revenue share of 0 percent in the second quarter, Walkley found. That was still better than BlackBerry, which has a negative 1 percent share, or Motorola, with negative 2 percent.”

Read more in the full article here.

17 Comments

      1. Read the article. You still can’t have 103% industry profits. The other companies may be losing money on their smartphones, but that doesn’t add percentage points to overall industry profits.

        1. People just don’t understand math.

          Company A makes $100.
          Company B loses $50, i.e their “profit” is -50.
          Total profit for the market = $50.

          What percentage of $50 is $100? 200%.

          So in this scenario, Company A makes 200% of the profits, while Company B is at -100%. The percentages still add up to 100.

          ——RM

  1. So, when Apple signs with China Mobile and take their share of the remaining 67% of China’s smart phone market. What will Samsung’s market share drop to? It is easy to count all the markets Apple isn’t in to make your numbers look good. What is Apple’s market share in the markets Apple is in? That is the real story!

    1. I wish business did work that way, but it doesn’t. Apple is in the markets it can get into with its particular business model. What Samsung is showing, is that their business model has produced a tremendous growth over the past two years. That particular model happens to include slavish copying and nefarious activities. However, no one has ever said that the markets are a particularly just or moral environment.

      That said, Apple has always thrived best under their ‘blue water’ model. That’s why it is so important that they continue to spend their war chest on innovation while maintaining sector-leading quality.

  2. Silly Rabbit can’t add ….. You can not have 103% of 100% ….

    Even with negatives in the equation …. If negative they simply have nothing of the profits but the profits are the profits and you can only have 100% …..

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