In Terms Of Smartphone Profits, Apple And Samsung Continue To Dominate

Apple and Samsung continue to dominate the global smartphone market. During the previous quarter, the makers of the iPhone and Galaxy S IV accounted for 100 percent of the global smartphone industry profits, according to new research from Canaccord Genuity. However, this was actually down slightly from the previous quarter, according to AllThingsD. From January through March, Apple took 57 percent of the profits generated in the smartphone industry, while Samsung’s take was 43 percent. LG was the only other provider that generated a positive “value share,” at 1 percent. Nokia, BlackBerry, Sony, and HTC contributed zero operating profit to the market, while Motorola’s accounted for a 1 percent loss. During the previous quarter, Apple and Samsung accounted for 103 percent of the industry’s overall operating profit.

According to Canaccord Genuity’s T. Michael Walkley:

Due to operating losses from smaller scale competitors trying to compete, Apple and Samsung’s combined share of industry profits have exceeded 100 percent in previous quarters. While Apple and Samsung continue to dominate the share of industry profits, improving cost structures and results from other OEMs have reduced Apple and Samsung’s combined share to 100 percent from levels above 100 percent the past several quarters.

To clarify, profit share is not the same as market share. This is why Apple and Samsung can take 100 percent of the profits even though other companies compete. See also: Going Rogue: The Next iPhone Could Make The Samsung Galaxy S IV Look Like A Turtle, and The Life Of The Pool Party: Samsung Mocks Apple's iPhone In New Galaxy S4 Ad.

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