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Wednesday, February 06, 2013, 12:06 pm
Apple & Samsung capture 103% of handset profits as rivals lose money
Together, Apple and Samsung accounted for 103 percent of mobile phone profits in 2012, a number made possible because of losses incurred by rivals Motorola, Sony and Nokia.Apple took a commanding 69 percent of handset profits last year, more than doubling the next closest company, Samsung, which accounted for 34 percent. Together, that gave the two companies more than 100 percent of the industry's profits, according to research released on Wednesday by Canaccord Genuity.
That's because Nokia's losses gave it a negative 2 percent of industry profits, while Motorola and Sony Ericsson both accounted for minus 1 percent.
In fact, the only other company to see any positive in 2012 was HTC, which accounted for just 1 percent of industry profits. Both BlackBerry and LG are estimated to have broken even.
Apple's share of the industry's profits were even greater in the fourth quarter of 2012, when the company launched its latest flagship handset, the iPhone 5. In the holiday quarter, Apple took 72 percent of the industry profits, while Samsung's share slid to 29 percent.
With few major catalysts on the horizon, analyst Michael Walkley of Canaccord Genuity expects Apple and Samsung will retain their dominant shares of the handset industry for the foreseeable future.
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Previous Comments View All
AAPL will drop as it shows Apple profitability may have peaked .
Obviously, Apple is doomed.
Wall Street's response to Apple's success has been baffling. The stock did start to rise today after Apple announced its 25 billionth iTunes download. So the market is excited about Apple selling lots of stuff on iTunes - even though Apple acknowledges that they make little, if any, profit on iTunes.
But hardware success apparently doesn't impress Wall Street.
Go figure.
It would have been helpful if the story had indicated how these guys are able to arrive at Samsung's "mobile device" numbers, considering that Samsung's reporting segment is defined as "IT and Mobile" -- in other words, it includes all sorts of IT and telecom-related equipment and software services (including PCs).
In other words, are Samsung's numbers likely inflated?
...Apple profitability may have peaked .
*snort*
more bad news. Waiting for the stock price to drop with analysts claiming Apple should have taken 103% by itself.
I just don't get that. They don't magically have more money than they do have, so whatever actual profits (positive money going into the hands of the companies) exist, THAT is the 100%.
You've been corrected on this before.
Take a hypothetical market:
Company A $100 profit
Company B $200 profit
Company C $100 loss
The total profits for the industry are $200, not $300. So with the total profits of $200, Company A had 50% of the market's profits and Company B had 100% of market profits.
It works exactly like your taxes. If you have two businesses and one of them earns $1,000 and the other one loses $500, your net reported income would be $500.
Good is the new bad.
Up is the new down.
You've been corrected on this before.
I know what you said, it's just a stupid way to count things.
How much money was actually made? How much of that money was Apple's?
Why does anything else matter?
I just don't get that. They don't magically have more money than they do have, so whatever actual profits (positive money going into the hands of the companies) exist, THAT is the 100%.
It doesn't have to make sense to you as it's long as it's a consistent method of accounting.
*snort*
You could do something better than a troll post. The problem I see is that people may be influenced too heavily by their surroundings here. It could peak in one country and pick up in another. Note all the articles regarding China over the past two years.
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I just don't get that. They don't magically have more money than they do have, so whatever actual profits (positive money going into the hands of the companies) exist, THAT is the 100%.