Apple iPhone continues utter domination with 86% share of handset industry profits

“A new analysis of third-quarter handset industry operating profits estimates that Apple accounted for a massive 86 percent share,” Neil Hughes reports for AppleInsider.

“Analyst Michael Walkley of Canaccord Genuity issued a note to investors on Tuesday, a copy of which was provided to AppleInsider, in which he revealed his latest research, based on company reports and estimates,” Hughes reports. “Apple’s gains came at the cost of competitors, most notably Samsung, which was estimated to have accounted for just 18 percent of the industry’s profits. That’s the lowest total for Samsung since 2011, Walkley said.”

MacDailyNews Take: Samdumb. Not making it up in volume.

“Still, Apple and Samsung combined for more than 100 percent of the industry’s total profits, because competitors such as Motorola and Microsoft actually lost share. In fact, other than Apple and Samsung, the only other company to have a positive value share in the September quarter was LG with 2 percent, according to Walkley,” Hughes reports. “HTC and BlackBerry are estimated to have accounted for 0 percent share in the quarter, essentially breaking even. And Motorola with an estimated mobile operating loss of $185 million is said to have accounted for -2 percent, while Microsoft's $341 million estimated lost in handsets gave it -4 percent of the industry’s profit value share.”

Read more in the full article here.

MacDailyNews Take: Bu, bu, but market share?! (smirk)

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

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13 Comments

  1. 86% profits… Pffft. Where’s that major market share Wall Street needs to value a company’s guarantee of success. Without major market share those profits could dry up by tomorrow.

    /s

    I’ll admit it’s a bit amazing how the iPhone’s profits (86%) are slightly more than Android’s worldwide market share (83%). Oh, well. Judging by the iPhone’s shrinking market share, Apple is still considered doomed as far as Wall Street is concerned.

  2. Horace Dediu of Asymco.com did an off-the-cuff estimate in the podcast he posted yesterday that he thought Apple’s profit share would be around 90% of the WHOLE cellphone industry, not just smartphones. Walkley of Canofcorn usually comes up with the same result.

  3. The article mentions these numbers do not include Chinese venders. Once these are included, both Apple’s and Samsung’s percentages will decline. The drop, even if small, will be used to show Apple’s decline, though the effect will be greater for Samsung.

  4. But, but, but . . . . everyone has been saying that Samsung has been stealing Apple’s lunch money and that Apple is doomed. How can this be true that Samsung’s market share isn’t way more than Apple’s? Can all those pundits and analysts out there possibly be . . . . WRONG?

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