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

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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49 Comments

1. TROLL

Posts: 4851; Member since: Apr 13, 2012

Samsung+Android=FTW™ Apple down south©

9. Mxyzptlk unregistered

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

13. tedkord

Posts: 17133; Member since: Jun 17, 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.

17. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

Ted what's your honest opinion of the s4 please

42. tedkord

Posts: 17133; Member since: Jun 17, 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)

21. 9thWonderful

Posts: 232; Member since: Jan 24, 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.

25. joey_sfb

Posts: 6794; Member since: Mar 29, 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.

29. Trex95

Posts: 2362; Member since: Mar 03, 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.

39. joey_sfb

Posts: 6794; Member since: Mar 29, 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.

15. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

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

27. AnTuTu

Posts: 1592; Member since: Oct 14, 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

32. Trex95

Posts: 2362; Member since: Mar 03, 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.

28. anywherehome

Posts: 971; Member since: Dec 13, 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 :)

31. quadrazeus

Posts: 359; Member since: May 03, 2013

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

34. anywherehome

Posts: 971; Member since: Dec 13, 2011

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

43. tedkord

Posts: 17133; Member since: Jun 17, 2009

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

46. ecmedic4

Posts: 520; Member since: May 02, 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.

48. xsmartphonex

Posts: 41; Member since: Mar 14, 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

49. tedkord

Posts: 17133; Member since: Jun 17, 2009

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

30. darac

Posts: 2156; Member since: Oct 17, 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!

35. Note2waitingonNote3

Posts: 87; Member since: Mar 19, 2013

Clearly NOTHING BEATS SAMSUNG....

2. Aeires unregistered

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

5. sprockkets

Posts: 1612; Member since: Jan 16, 2012

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

6. blingblingthing

Posts: 891; Member since: Oct 23, 2012

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

36. Note2waitingonNote3

Posts: 87; Member since: Mar 19, 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.

12. Mxyzptlk unregistered

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

14. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Declining.

16. tedkord

Posts: 17133; Member since: Jun 17, 2009

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

3. Rehankhan

Posts: 323; Member since: Oct 24, 2012

Go samsung !

4. tedkord

Posts: 17133; Member since: Jun 17, 2009

Thats100%. No one else had any profits?

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