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Apple claimed 57% of the smartphone industry's Q1 profits with 43% belonging to Samsung

Posted: , by Alan F.

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Apple claimed 57% of the smartphone industry's Q1 profits with 43% belonging to Samsung
According to investment banking house Canaccord Genuity, Apple's lower profit margin on the Apple iPhone last quarter didn't change things in the industry. Apple and Samsung together continue to grab 100% or more of the profits in the smartphone industry. The latest figures show Apple with 57% and Samsung with the remaining 43% of the profits made from manufacturing and selling handsets.

Besides Apple and its Korean rival, no other company in the business is making any money other than LG which accounted for 1% of the profit in the smartphone business in the first quarter. Thanks to Motorola's -1% share of the industry's Q1 profit, it all adds up to 100% as HTC, Sony and BlackBerry each had no profits to report.

Apple and Samsung combined for 100% of the smartphone industry's profits in Q1 2013

Apple and Samsung combined for 100% of the smartphone industry's profits in Q1 2013

When Samsung goes on the warpath with its heavy marketing, this reduces the bottom line. While Sammy was spending big bucks to advertise the Samsung Galaxy S III during the 2012 holiday season, Apple was grabbing 72 cents out of every dollar that was dropping to the bottom line of smartphone producers.

The Apple-Samsung duopoly extends its domination even when looking at the operating margins of the manufacturers. Even though Apple's operating margin dropped sequentially to 35% in the first quarter of this year from 40% in the last period of 2012, the Cupertino based tech titan still has the highest margin on its phones. Samsung is next as its operating margin rose from 20% at the end of 2012 to 22% as Q1 came to an end. Motorola was at the opposite end of the spectrum, losing 18 cents for every dollar it received from smartphone sales.

source: electronista

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posted on 06 May 2013, 21:47 19

1. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


Samsung+Android=FTW™

Apple down south©

posted on 06 May 2013, 22:20 22

9. Mxyzptlk (Posts: 3555; Member since: 21 Apr 2012)


FTW? Are you sure? A lot of people are thoroughly disappointed with the SIV.

posted on 06 May 2013, 22:23 19

13. tedkord (Posts: 4811; Member since: 17 Jun 2009)


A lot of people were thoroughly disappointed with the iPhone 4s, too.

BTW, the Galaxy S4 is not Android. Its one phone that uses a modified version of Android.

posted on 06 May 2013, 22:25 8

17. darkkjedii (Posts: 11454; Member since: 05 Feb 2011)


Ted what's your honest opinion of the s4 please

posted on 07 May 2013, 08:59 2

42. tedkord (Posts: 4811; Member since: 17 Jun 2009)


I haven't seen one yet, so I can't say much. Like most folks on here, I think Samsung phoned this one in. Its like an iPhone s model, too little different from the previous (though it is more different than the 3g-3gs or 4-4s)

posted on 06 May 2013, 22:40 12

21. 9thWonderful (Posts: 232; Member since: 24 Jan 2013)


ok, honestly (?)...then let's break it down:

-HTC = eh...
-Motorola = thumbs side ways.
-LG = shouldn't we be talking about REAL smart phone manufacturers?
-Sony = mm...when's the new PS4 coming out again? oh, they make smart phones too? hmph.
-All of the other random manufacturers who use Android = no thanks, i'll just continue to carry my flip phone w/the VGA camera.

Sir, Samsung is pretty much Android at this point.

posted on 06 May 2013, 23:18 10

25. joey_sfb (Posts: 2931; Member since: 29 Mar 2012)


Thats not true. Galaxy series has 100% android app compatibility.

They do have build in features that not available in other brands of android devices.

posted on 07 May 2013, 01:28 6

29. Trex95 (Posts: 544; Member since: 03 Mar 2013)


You mean the bloatware of Android. I used it for 3 days and return it back for these reason
- laggy and glitch performance
- Camera isn't that great for taking pics at night but video it's good
- Screen is sharp but still has some bluish tint on it and more duller than S3 screen.
-Heating issue

BTW this Octa-core version i replace it with Nexus 4. understand that nexus doesn't have Super Amoled, but IPS True HD it's fantastic screen more bright and it does has an excellent sharpness even though it's 720p, better fast performance, camera isn't that bad.

posted on 07 May 2013, 06:30 2

39. joey_sfb (Posts: 2931; Member since: 29 Mar 2012)


I still happy with my Samsung products. I bought a smart watch from Sony. Broke down within 2 weeks. Sent for service 2 weeks lend time. Came back wear it for 3 days the wist strap ring give way. No warranty ask me to buy another strap. No way!

Seriously staying away from Sony. I told my friend and he got angry because he is a Sony fan. I told him well you can keep buying Sony as you have better luck with Sony.

I will keep to my Samsung. So far so good! In fact impress with their after sales services.

posted on 06 May 2013, 22:24 4

15. darkkjedii (Posts: 11454; Member since: 05 Feb 2011)


Mxy you know how Troll is when he gets into his zone lol.

posted on 06 May 2013, 23:54 5

27. AnTuTu (Posts: 815; Member since: 14 Oct 2012)


Once there was a fruit hahahah

FTW Sammy and whole world gonna see another beast after S4 which will be S3+Note2+S4 =====>>> NOTE 3

posted on 07 May 2013, 01:42 4

32. Trex95 (Posts: 544; Member since: 03 Mar 2013)


-Xperia note 6.3' screen, 440ppi, Camera with xenon flash and Sony rumored that this going to be best phone camera in all Android devices and it's in bar with nokia 808 PV camera.
-Nexus 5
-Iphone 5s\6
-Lg optimus g2
-Motorola x
-Htc one\one+
-Nokia Lumia 928 (Please don't mentioned that WP it's big flop WP start doing well this days)

Note3 have to compete with all of these high ends things it's not easy like before.

posted on 07 May 2013, 00:46 1

28. anywherehome (Posts: 971; Member since: 13 Dec 2011)


no, you lie :)
iPhone is a completely inferior product, see the facts:
bit [dot] ly/RYzOPP
+
1) no file copy
2) no default app
3) just icons from 1990
4) no nfc
5) fascism in Tunes

etc etc
sorry, but iPhone = dumb phone :)

posted on 07 May 2013, 01:32 5

31. quadrazeus (Posts: 359; Member since: 03 May 2013)


Every 3 months around 40 million iPhones are sold. The world isn't dumb. The readership of PhoneArena is. :)

posted on 07 May 2013, 02:33 1

34. anywherehome (Posts: 971; Member since: 13 Dec 2011)


and there is also sold billions of rolls....does it means the world is not dumb too? :)

posted on 07 May 2013, 09:05 1

43. tedkord (Posts: 4811; Member since: 17 Jun 2009)


And during that same time around 120 million Android phones phones are sold.

posted on 07 May 2013, 12:12

46. ecmedic4 (Posts: 198; Member since: 02 May 2013)


Gotta realize tho, there are hundreds of android phones on the market and just 3 iphones on the market right now, so one would expect android phones to sell more considering there is more of them to choose from.

posted on 07 May 2013, 16:01 1

48. xsmartphonex (Posts: 41; Member since: 14 Mar 2013)


no..... iphones are selling more because theres only 3 phones on the market. Theres only 3 phones to choose from, so of course there going to sell more

posted on 07 May 2013, 18:44 1

49. tedkord (Posts: 4811; Member since: 17 Jun 2009)


That doesn't matter. People have a choice, and over three times as many choose Android.

posted on 07 May 2013, 01:31 8

30. darac (Posts: 2156; Member since: 17 Oct 2011)


They're not disappointed.. they are hating on it, just like they are hating on Apple.
The more successful and dominant a company is, the more hate it draws in.

S4 is a fantastic phone, that's a fact.
It's debatable whether it is better than HTC One, another fantastic phone.
That doesn't make it a bad product!

posted on 07 May 2013, 03:03 2

35. Note2waitingonNote3 (banned) (Posts: 87; Member since: 19 Mar 2013)


Clearly NOTHING BEATS SAMSUNG....

posted on 06 May 2013, 22:05 12

2. Aeires (unregistered)


I'd rather see more than two companies being successful in the cell phone market.

posted on 06 May 2013, 22:11 2

5. sprockkets (Posts: 1200; Member since: 16 Jan 2012)


Motorola might shine this year since Google shook up the company. Here's hoping they give people what they want.

posted on 06 May 2013, 22:12 2

6. blingblingthing (Posts: 434; Member since: 23 Oct 2012)


Go LG, go HTC, go Sony and Motorola.
Sent from my nexus 4.

posted on 07 May 2013, 03:05 1

36. Note2waitingonNote3 (banned) (Posts: 87; Member since: 19 Mar 2013)


As the article states Htc, Motorola, and Lg are basically losers. Stop fooling yourself Nexus 4 is very soft compared to my Galaxy Note 2.

posted on 06 May 2013, 22:21 5

12. Mxyzptlk (Posts: 3555; Member since: 21 Apr 2012)


It's called free market. Apple is successful because they make good products that just works and people want to buy them.

posted on 06 May 2013, 22:24 5

14. rusticguy (Posts: 2828; Member since: 11 Aug 2012)


Declining.

posted on 06 May 2013, 22:24 11

16. tedkord (Posts: 4811; Member since: 17 Jun 2009)


The same reason Samsung is successful. The same reason Android is successful.

posted on 06 May 2013, 22:05 11

3. Rehankhan (Posts: 323; Member since: 24 Oct 2012)


Go samsung !

posted on 06 May 2013, 22:07

4. tedkord (Posts: 4811; Member since: 17 Jun 2009)


Thats100%. No one else had any profits?

posted on 06 May 2013, 22:35 3

19. knowah (Posts: 15; Member since: 21 Sep 2012)


All of them but Motorola did. Rounding in financials usually ends up being misleading, but this type of data isn't meant for most investors.

This type of data is great for arguing among fanboys, and maybe extremely safe (read: extremely low return) investment. Otherwise it's practically useless.

This is also only for the US market.

posted on 06 May 2013, 22:13 1

7. FlushGordon (unregistered)


How bout the cheap China phones? It's hard to believe none of them made considerable profits..the Canvass Micromax HD sold like hotcakes....

BOGUS article

posted on 06 May 2013, 22:15 1

8. darkkjedii (Posts: 11454; Member since: 05 Feb 2011)


One company owning 57% of the profits in the entire mobile landscape is awesome. And 43% isn't too shabby either. My two favorite companies outside of the one I work for.

posted on 07 May 2013, 10:11 2

44. tedkord (Posts: 4811; Member since: 17 Jun 2009)


I'm going to disagree. One company owning the majority of profits is scary. Monopolies and duopolies are never good for the consumer. I'd much rather see an even split between Apple, Samsung, LG, Motto, HTC and Blackberry. With some smaller OEMs sprinkled in, too.

posted on 06 May 2013, 22:21 1

10. kclgphilsbsa (Posts: 762; Member since: 21 Jan 2013)


well done samsung & apple,,
i hope that d figures will change for d rest of 2013 w/ htc and sony's new and upcoming offers :)

anyway, i thought Sony Xperia Z is selling very well and consdering that the other xperia phones are goodlooking that everyone wud be interested in grabbing them?

posted on 06 May 2013, 22:31

18. FlushGordon (unregistered)


The Xperia Z is soo January 2013, come down to your senses will ya?

There are at least 5 NEWER smartphones out there that trumps it in terms of dollar-per-feature

SONY late in the mix as usual

posted on 06 May 2013, 22:21 6

11. mydi.maus (unregistered)


APPLE STILL ON TOP..samsung is still climbing(trying)...

posted on 07 May 2013, 08:57 2

41. synot (Posts: 233; Member since: 14 Sep 2012)


Stupid this article is just about American sales not the world.Samsung is the world leader in everything mobile

posted on 06 May 2013, 22:39 3

20. xperiaDROID (limited) (Posts: 5494; Member since: 08 Mar 2013)


Yeah, yeah, congrats to Apple and Samsung...............

Now the only thing I want to see is more manufacturers climb up, I don't want to know how Apple and Samsung gained or whatever cuz this is what we expected!

Come on Sony, HTC, BlackBerry, Motorola, LG and Nokia! Keep it UP!!!!!

posted on 06 May 2013, 22:57 11

22. nazgul (Posts: 21; Member since: 27 Apr 2012)


Come on phone arena... Don't ignore to point out the trend... Apples share down from 72 to 57 while Samsung up to 43 from 29. That's significant.

You should report this as well, since you pointed that the Samsung's marketing is affecting its profits. Make sure you present an unbiased whole picture.

posted on 06 May 2013, 23:08 4

23. kclgphilsbsa (Posts: 762; Member since: 21 Jan 2013)


Agreed

posted on 06 May 2013, 23:08 3

24. YouGotTrolledSon (banned) (Posts: 41; Member since: 25 Nov 2012)


bro that's why we call ''iphonearena''.. no offense

posted on 06 May 2013, 23:48 1

26. Shrihari (Posts: 79; Member since: 29 Jan 2013)


also remember Nokia had a significant rate of market share till elop took over the company... continue your innovation in wp but please kick elop out of company....he was the one who killed meego and Symbian....bring them back from dead and innovate them..they are worth it..

posted on 07 May 2013, 01:44 1

33. darac (Posts: 2156; Member since: 17 Oct 2011)


In current quarter, Samsung will take the top spot.

It's basically a done deal.
Apple's own revenue prediction for the next quarter is a drop from 39 billion to about 33 billion.
That is massive. Take into account that their profit margins are constantly shrinking, and that they had 9.5 billion profit on that 39B revenue.

Samsung just launched a Galaxy S4.
After breaking his own records in the quarter before that launch, with further increased profit margin.
Do the math.

Also, PA, what about Huawei and ZTE??
They're, like, among the top 6 brands in the industry.
HTC was flat last quarter.. Sony had a small loss. Nokia had 180 million loss. Motorola also around that number.
So that means Huawei and ZTE also are profitable, next to LG.
LG's profit alone can't even out the losses of Nokia and Motorola.

posted on 07 May 2013, 03:29 1

37. funnyguy (Posts: 234; Member since: 10 Jan 2013)


The s4 Sucks .....
It's gonna make people realize how great apple is.

posted on 07 May 2013, 05:35

38. shuaibhere (Posts: 1429; Member since: 07 Jul 2012)


Jokes apart...

posted on 07 May 2013, 07:06

40. Aeires (unregistered)


At least your user name is correct, I laughed at your comment.

posted on 07 May 2013, 10:13 1

45. tedkord (Posts: 4811; Member since: 17 Jun 2009)


The way the 4s and 5 made my buddy at work realize the Note 2 was better?

posted on 07 May 2013, 14:38

47. donfem (Posts: 533; Member since: 30 Mar 2011)


And what about the limited capability of your favorite fruit fone?

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