“After four straight years of double-digit growth, the mobile phone market has hit a wall. Excluding Chinese vendors, the industry is likely to see little or no revenue growth this year, Raymond James analyst Tavis McCourt said in a research note late Monday,” Patrick Seitz reports for Investor’s Business Daily. “‘The great moderation of mobile device growth is upon us,’ McCourt wrote.
“‘In aggregate, we believe the industry ex-Chinese vendors is likely to see little to no growth this year,’ he said. ‘Chinese-based vendors now account for 30% of industry revenue and 40% of industry volumes, and although growth is still elevated at Chinese-based vendors, we suspect these vendors will slow in 2014 as well, as China’s end markets for smartphones slow.'”
“Apple and Samsung continue to soak up all the industry’s profits, McCourt says. Apple claimed 87.4% of phone earnings before interest and taxes in the fourth quarter, he said. Samsung took in 32.2% of industry profits. Because their combined earnings were higher than the industry’s total earnings as a result of many vendors losing money in Q4, Apple and Samsung mathematically accounted for more than 100% of the industry’s earnings,” Seitz reports. “A year ago, Apple accounted for 77.8% of mobile phone industry profits, followed by Samsung with 26.1%, McCourt said.”
Read more in the full article here.
MacDailyNews Take: 87.4% of the mobile phone industry profits. YKBAID.
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