Apple reaps 106% of smartphone industry profits

“Apple has seized everything worthwhile from rivals in the smartphone industry,” Patrick Seitz reports for Investor’s Business Daily.

“Canaccord Genuity analyst Michael Walkley on Monday estimated that Apple took 106% of smartphone industry profits in the third quarter,” Seitz reports. “Its share is more than 100% because other vendors lost money in the business, resulting in Apple having more smartphone profit than the industry netted overall.”

“Apple’s smartphone operating profit totaled $10.84 billion in Q3, vs. the industry total of $10.28 billion, Walkley said,” Seitz reports. “In Q2, Apple accounted for 75% of smartphone industry profit, he said.”

Seitz reports, “Samsung accounted for 1% of smartphone industry operating profit in Q3, or $87 million.”

Read more in the full article here.

MacDailyNews Take: Total dominance.

So, when you hear, from some corners, of “the world’s largest smartphone maker” and it’s not Apple, don’t forget to chuckle.

What’s really “larger,” total number of units shipped or taking 106% of the entire smartphone industry’s profits? (Apple only competes in the latter endeavor, never the former.)

Little Mikey had a lemonade stand. Okay, it was a kiosk. He sold 100 (8 oz.) cups yesterday for 10-cents each. He spent 11-cents per cup for artificial lemon flavoring, corn syrup, and the paper cups. He used tap water because it was free. Threw it all together in a big plastic pail. He’s out a buck for all of his trouble. Boy, that was a lot of work for less than nothing!

Around the block, little Steve runs a lemonade stand, too. It’s all blonde wood and very clean. He sold 50 (24 oz.) glasses yesterday for 50-cents each. He spent 20-cents per glass on fresh-squeezed lemons, pure cane sugar, spring water (mixed with the utmost care), and some very nice glassware (he buys in bulk and gets a good price). He took home $15 yesterday. He’s currently building his newest stand right where Mikey’s used to be.MacDailyNews, April 23, 2009

SEE ALSO:
Total dominance: Apple iPhone takes 104% of smartphone industry profits – November 4, 2016
Apple’s iPhone can soon reap 100 percent of world’s smartphone profits – November 17, 2015
Apple’s iPhone owns 94% of smartphone industry’s profits – November 16, 2015

12 Comments

  1. As Apple kills off the Mac and wireless product lines to focus on the iPhone and Watch, AAPL is just one exploding batter disaster away from cutting its market cap in half.

    Fire Timmy Now!

  2. There must be something that Android OEMs are gaining if they continue to create handsets in the face of these articles. Perhaps that should be looked into instead of the constant ego-stroking this topic has become. Doesn’t anyone else think it strange?

  3. It’s all about economy of scale and price point.
    Apple make large profits because they sell a large volume of units in a good price range and have excellent margins.
    Samsung make small profits because they sell a very large volume of units in a low price range with low margins. There are fixed costs that when the volume drops, as it did with the battery issue, their margins disappear and they lose money.
    So for the low margin guys, volume is essential to making money. If something happens to disrupt this, like a technical issue or worse yet a more efficient competitor, they are royally screwed.

    1. I assume you’re serious. It means that the losses at some companies were so great that by comparison, Apple made 106% of total profits. This takes into account both profits and losses in the smartphone biz. This figure is entirely different from unit sales. It essentially means that very few smartphone companies actually make a profit. Instead, they sell at a loss, like Amazon how Amazon sells their Android slab junk. This practice buys market share, in terms of sales. But other parts of the company have to subsidize their smartphone division until or unless they start making an actual profit. Eventually, if the buying market share gimmick doesn’t pay off, the company falls into a debt hole and dies.

    2. Actually Samsung also made a profit, but it was well under 1% of the industry total, so is little more than a rounding error compared to Apple’s profit.

      All the other suppliers appear to have made losses.

      If anybody is wondering how Apple can make 106% of the industry profits, the explanation is that the other companies made a negative profit of -6%, so the total does add up to 100%.

  4. 106%… not possible. This is a numbers spin by bean counters. Seriously, 106%? That is the same accounting bs lingo used by “yes men” from Enron, Worldcom and all those crooked misleading accountants.

    1. I understand your confusion. The 106% number is based on the pie consisting of the total profit AND loss of the smartphone industry players. I believe what you want to see is what percent each player has of the pie that only consists of players that made a profit in which it would be obvious that certain players in the Android and ‘other’ camps are making a profit, albeit small ones.

Add Your Feedback

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