77 cents of every dollar of profit in the mobile industry went into Apple's vault during Q2

77 cents of every dollar of profit in the mobile industry went into Apple's vault during Q2
Raymond James analyst Tavis McCourt has published a new study that shows that Apple received a whopping 77% of the profits in the mobile industry during the second quarter. To prove how much higher the profit margins are for the Cupertino based firm than the rest of the industry, those profits were accomplished with only 43% of Q2 industry revenue.

In terms of units, Apple shipped just 6% of smartphones and tablets in the second quarter and yet wound up with the lion's share of revenue and profits. And this comes during a period of time when Apple iPhone sales are usually not running at peak performance with the next iteration of the device on the way. And McCourt points out that while Samsung sold twice as many smartphones as Apple did in the second period, it really doesn't matter because Apple took such a huge share of profits.

As McCourt noted, HP and Dell sell a lot more PCs than Apple sells Macs, but the profits are what counts. So the analyst says the same thing applies with Samsung and Apple's mobile devices. "Ultimately, profits are the feedstock of innovation;" says McCourt, "and innovation drives profits."

source: AllThingsD


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46 Comments

1. taco50

Posts: 5506; Member since: Oct 08, 2009

And someone was just saying Apple is desperate and suing Samsung because Samsung was taking all their profits. Sticking to facts that's an amazing achievement. We have people on here constantly knocking Apple's strategy, but you can't argue with these results. Apple is dominating profits in a way no one ever has. That along with industry leading customer satisfaction and loyalty. I guess the iPhone is not so bad :).

5. MeoCao unregistered

SS, HTC..profits are small and that benefits the users. What the Apple's profit turns into? Better technology? No, just more lawsuits.

12. plgladio

Posts: 314; Member since: Dec 05, 2011

MeoCao your writeup was good, but really sad that your comment will be hidden soon because of the previous comment.

36. taco50

Posts: 5506; Member since: Oct 08, 2009

Htc is going out of business. That doesn't benefit anyone.

37. plgladio

Posts: 314; Member since: Dec 05, 2011

CEO of HTC commented above..

9. matrix_neo

Posts: 334; Member since: Nov 03, 2011

So you're in cloud 9 now itaco50?! Im sure you're very happy coz apple added another profits in their vault. But how much apple give to you? An outdated iphone or an app launcher? LOL

20. The_Exxile

Posts: 4; Member since: Aug 06, 2012

Yeah, great that Apple has made a phone as desirable as the iPhone. On the other hand, Apple didn't make the smartphone accessible the way Android did. In terms of changing the world as we know it, I think Android is a step ahead.

43. Savage unregistered

Yes, Apple is taking all profits, Hardly a big surprise. How does that benefit YOU? One device a year with incremental changes? Good luck.

44. kingpet13

Posts: 139; Member since: Feb 02, 2012

Yeah, that was apple. Remember they're suing Samsung for stealing their customers. And customers =profit.

2. Aeires unregistered

If Foxconn made T-shirts, they'd be called a sweat shop. Because they make electronics, they only make the news as blips between stories. Apple strong armed Foxconn and are reaping the rewards, and yet people who buy Apple products still don't think they are over paying so the cycle continues.

3. hitmantb

Posts: 79; Member since: Jul 26, 2012

I laugh at comparisons to Nokia and Rim of the past, these companies at their peak, were never even close to the #1 most valuable company in the world, and they never had 100+ billion in cash reserves, nor dominated industry profit like Apple has. And the only reason Android is gaining market share is because of low end units. They get crushed by Apple in premium space. As good Samsung was in Q2, they sold 50 million smartphones, 10 million of them was GS3 variants, 5 million was GS2 + Note variants, all others were low end devices. 70% of Samsung Q2 smartphones were low end! By comparison, Apple sold 26%, and almost all of them (3GS are offered in such limited quantities at this point) are 4S and 4's. And all other Android vendors are non-factor at this moment, because they do not manufacturer their components like Samsung, and do not have the raw muscle of Apple to dominate supply chain. None of them will put up any meaningful fight. The most they can do is drive the price lower (HTC One X already $99, can be bought for $400ish unlocked!) and all Android manufacturers loses. Heck, Microsoft makes more profit from Android than anyone other than Samsung at this time!

4. taco50

Posts: 5506; Member since: Oct 08, 2009

OEM's are actually going to be put out of business by android. They all have the same OS that google gives away for free so they have no way to differentiate their phones. They end up competing on specs and price so they feel pressured to constantly come out with new phones which totally devalues older android phones. It's a vicious cycle and none of them make a profit. Samsung is the only one with a sustainable model and they've done it by basically copying Apple's phone. Meanwhile Apple comes out with one phone a year and rakes in the dough. It's not overpriced if people are buying them in record numbers.

14. matrix_neo

Posts: 334; Member since: Nov 03, 2011

Are you day dreaming itaco50?! It seems you're in dreamland when you write your comments, it's very far far from reality. Pity on you....

16. protozeloz

Posts: 5396; Member since: Sep 16, 2010

do us all a favor, don't give him worth replies

15. plgladio

Posts: 314; Member since: Dec 05, 2011

Have you heard of SENSE, TOUCHWIZ? Take a LG Android phone and a Samsung Android phone, though the menus are same like still they show a difference in their product. The "look and feel" changes. Its not just only the hardware need to be changed, we are in world were technology speaks rather than color and shape.

17. protozeloz

Posts: 5396; Member since: Sep 16, 2010

again do not waist your time, its what he wants.... don't you see him hating on Samsung

26. plgladio

Posts: 314; Member since: Dec 05, 2011

I agree

32. taco50

Posts: 5506; Member since: Oct 08, 2009

You know what they say: You can put lipstick on a pig, but...

38. plgladio

Posts: 314; Member since: Dec 05, 2011

Oh! Pig is owned by Apple? What is Apple problem if Samsung or HTC or LG put lipstick to Pig or Ass, why Apple is interested to know or need that money (which Samsung got from putting lipstick to pig)? That much cheap Apple is? If so ask them to come and be my assistant I'll pay them few cents a month..

19. frydaexiii

Posts: 1476; Member since: Dec 01, 2011

It is overpriced when it doesn't have the hardware or can't even do a quarter of what other phones of the same price range can & have.

21. The_Exxile

Posts: 4; Member since: Aug 06, 2012

They've done it by copying the iPhone? No. They did it by making sure they had a top model that people wanted across all carriers, as well as selling lower end models that are priced in a very smart manner. They did it by making their displays sharp, their cameras work well and their interface good looking (and less like the iPhone's every time they come out with a new iteration). They did it by giving people what they want: phones that are lighter, thinner, faster, and with the features people desire, like lots of memory, memory card slots, and a variety of screen sizes. Samsung has built itself up to a monster share of the market by doing all of these things. And trust me on this, there is no confusing an iPhone and a Galaxy S 3.

6. protozeloz

Posts: 5396; Member since: Sep 16, 2010

can you provide where that info is coming from? where you get those statics from?

33. taco50

Posts: 5506; Member since: Oct 08, 2009

Which statistics?

7. smartphone

Posts: 160; Member since: Oct 21, 2011

Even if they got 99% of all profit their greed can't be fulfilled.

8. Tre-Nitty

Posts: 470; Member since: Nov 16, 2010

Apple just keeps on rolling and raking in the dough. Hard to argue with their place in the industry. I say just give them their props.

11. windowsRocks

Posts: 155; Member since: Oct 28, 2011

This is way a closed system is always better for both developer & company

13. mas11

Posts: 1034; Member since: Mar 30, 2012

Man Apple really knows how to screw ppl

34. taco50

Posts: 5506; Member since: Oct 08, 2009

They know how to run a business. No one is forced to buy Apple products so no one is getting screwed.

18. wendygarett unregistered

Innovation drive profits? I though profits drives innovation...

22. jove39

Posts: 2147; Member since: Oct 18, 2011

And Apple is still greedy :(

* Some comments have been hidden, because they don't meet the discussions rules.

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