Apple and Samsung grabbed virtually all industry profits in Q1 2012

Apple and Samsung grabbed virtually all industry profits in Q1 2012
By now, you probably already know that nearly all of the mobile industry profits go into the pockets of Apple and Samsung. Apple has got the lion’s share of them, and Samsung grabs a noticeable chunk of the pie. The rest? Not so much. And the financials from last quarter seem to only worsen that trend.

Apple announced staggering profits of $11.6 billion for Q1 2012, while Samsung broke its own records and reported $4.5 billion in profit, $3.9 billion of which come from mobile alone. This translates into Apple having an 80% share of the market, while Samsung holds 20%, leaving zero space for other phone makers. 

The two companies combine for 74% of the industry’s revenue, according to Raymond James analyst Tavis McCourt’s estimates. In UBS analyst Maynard Um’s predictions, Apple and Samsung would have had 90% of the profits, but it turns out that the number is even larger, and this should be troubling for competing companies.


Those are some interesting forecasts for how the industry will develop. Do you agree that eventually the two Chinese phone makers will be the swing factor that decides how mobile platforms evolve?

via BGR

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39 Comments

1. TylerGrunter

Posts: 1544; Member since: Feb 16, 2012

Please Victor check your math: if Apple had 80% of the profit and Samsung had 20% then between both of them would have 100% of the profits, which it's impossible. Add to that this other hint: 4 billion is to 12 billion as 20 is to 60, not 80... That would add up if you had said that Apple has around 60% share of the profits not 80%...

5. preetmalhotra

Posts: 114; Member since: Apr 27, 2012

:D rest 20% goes to Nokia and HTC.. :P

2. sarb009

Posts: 322; Member since: Jun 15, 2011

samsung profits $4.5 billion and apple's is $11.6 billion. then how apple share is 80% n samsung share is 20% ??? i m confused and i cant calcuate this. anyone have any idea?

12. hung2900

Posts: 966; Member since: Mar 02, 2012

That's not the 1st time Victor's had a mistake in maths. In an article for tricking on Fools' day he said that a 6.7 inch screen is nearly two times bigger than 3.5 inch screen of Iphone, but the fact is nearly 4 times, not 2 times.

16. greathero1

Posts: 584; Member since: Jun 13, 2008

The Samsung profits that you speak of are for the entire company and divisions of Samsung. This is about the wireless industry.

19. sarb009

Posts: 322; Member since: Jun 15, 2011

ok samsung´s profit is $3.9 billion is just from mobile industry then its20% if the total profit is $16 billion but how the hell apple´s profit could be 80% which is less than $12 billion which is a bit less than 60% not 80%. do ur maths homework

28. greathero1

Posts: 584; Member since: Jun 13, 2008

Was that really necessary lol? Its a little off but 11.6 of 16 is about 73%, a lot more than the 60% you speak of but hey, 73% is a little less than 80% so they could have been a little more accurate. Asi haces su tarea de matematicas y aprende como escribir chico lol! jk

3. sarb009

Posts: 322; Member since: Jun 15, 2011

where is my maths teacher ? i need help right now !!!!!

4. darac

Posts: 2156; Member since: Oct 17, 2011

This sounds silly. Like R&D are being financed purely out of profits. While the reality is that R&D is just one of the expenses that go into the company's overall financial bill. It's like saying that if Lockheed Martin has only a billion of dollars of yearly profit, they don't have big R&D. For example, Huawei spent billions on research, which affected its profit. Any extra money that is NOT being spent-that is profit.

10. darac

Posts: 2156; Member since: Oct 17, 2011

..and just to add that Apple usually has lower overall revenue than Samsung, but they spend way less on employees and, ironically, R&D!(Samsung spends about 2-4 times more on R&D than Apple) Hence their sky-high profit.

11. remixfa

Posts: 14605; Member since: Dec 19, 2008

quite true. that's why Samsung Invents new tech and apple just pays others for it. r&d is most definitely figured in to costs before profits.. not after. profits are what is left after all expenditures have been paid.. not before. silly article

13. taco50

Posts: 5506; Member since: Oct 08, 2009

Except the current smartphone market and tablet market was defined by Apple and everyone else just copied.

31. InspectorGadget80 unregistered

Taco50 please shut THE HELL UP WITH ANDROID COPYING iOS.

15. greathero1

Posts: 584; Member since: Jun 13, 2008

Thats not completely true. The reason Samsung's R&D is so much is because Samsung is in many more market segments than Apple so of course they spend more money. They compete in a lot more industries than Apple does. Even you broke this down and just included mobile space, Apple would still beat them hands down and probably spend just as much money as Samsung does on R&D.

38. remixfa

Posts: 14605; Member since: Dec 19, 2008

greathero1 samsung mobile is a completely separate division of samsung. Samsung is like an octopus with each division being an arm acting independently of each other. Samsung Mobile spends billions on AMOLED, LCD, and processor (EXYNOS) research as well as on dozens of other things. What Samsung Mobile spends in R&D is only for samsung mobile.

6. som

Posts: 768; Member since: Nov 10, 2009

All other phone makers didn't made profit so only Apple made profit of $11.6 billion (61%) and Samsung $4.5 billion (39%) it is 100%. But 80% to Apple and 20% to Samsung was a wrong calculation by an editor.

7. darac

Posts: 2156; Member since: Oct 17, 2011

U serious? HTC, LG, ZTE, Huawei also posted profits. HTC had it's lowest profits in recent years, but still around 150million dollars. They will bounce back to around 300m in the next quarter. And we've yet to see about Motorola mobility(small profit not impossible), and Sony mobile(a loss is almost certain, but they will be back in green by the year's end). The only heavy loser in the mobile industry right now is Nokia

14. taco50

Posts: 5506; Member since: Oct 08, 2009

Your Math is way off. You don't divide 4.5 by 11.6. You have to divide 4.5 by the total which is at least 16 billion.

36. gwuhua1984

Posts: 1237; Member since: Mar 06, 2012

I don't think you should worry about the earnings. Your bet with Remix was smartphone sales.

17. greathero1

Posts: 584; Member since: Jun 13, 2008

That 4.5 billion is for the entire company of Samsung. This article is about a specific market segment so thats probably why there is a discrepancy.

21. sarb009

Posts: 322; Member since: Jun 15, 2011

yes apple´s profit is about 60% not 80% agrre with u. and taco is a sheep with i in front of it.

8. mercorp

Posts: 1045; Member since: Jan 28, 2012

$$$...

9. mercorp

Posts: 1045; Member since: Jan 28, 2012

Lol the picture from the s3 teaser..n

18. gallitoking

Posts: 4721; Member since: May 17, 2011

do this mean that Taco won the bet...

22. taz89

Posts: 2014; Member since: May 03, 2011

tacos and remix bet was who would sell the most smartphones..based on 1 source taco would win and based on another samsung would win...

26. gallitoking

Posts: 4721; Member since: May 17, 2011

thank you taz.. I was sick all weekend so I wasnt able to keep up to what happen here...

39. remixfa

Posts: 14605; Member since: Dec 19, 2008

300 reports say samsung won. 1 report says apple MIGHT have won.. so of course Taco is trying to say he won. Yet his "proof" even said that Samsung more than likely won.

37. gwuhua1984

Posts: 1237; Member since: Mar 06, 2012

All the sources that came out before two weeks ago are comparing Apple Q1 results to Samsung 2011 Q4 result. Samsung's Q1 results were just posted last week. Profit wise, Samsung is behind, but smartphone sold and shipment wise, Samsung won by almost 10%. It's too bad the bet was on smartphones sold and shipped, it's quite obvious that profit wise Apple would win.

27. tward291

Posts: 559; Member since: Feb 14, 2012

well both apple and sammy are both *** apple is like the guy that real popular and doesnt want anybody to know he *** lol and sammy is the retarted kid that gets bullied and really wishes he was the popular guy so he dress like him act like him but can never be hiim but they both end up being *** togther.

29. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

Totally nonsense...

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

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