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Apple and Samsung Take 103% of Handset Profits

Apple

It was reported by research firms that Apple and Samsung accounted for 103 percent of the mobile phone profits last year. This number was made possible because of the losses incurred by competing companies Motorola, Sony, and Nokia.

Based on the report released by Canaccord Genuity last Wednesday, the Cupertino-based company acquired 69 percent of handset profits last year. It’s more than twice Samsung’s profit share of 34 percent.

Samsung

Together, the two companies garnered over 100 percent of the industry’s revenue. That’s because Nokia’s losses gave it a negative 2 percent, while Motorola and Sony Ericsson both accounted for negative 1 percent. HTC, on the other hand, garnered just 1 percent of the profits, while BlackBerry and LG are estimated to have broken even.

Operating Profit Value Share by OEM | Canaccord Genuity

Operating Profit Value Share by OEM | Canaccord Genuity

Aside from this, Apple’s share of the handset profits was even greater during the last quarter of 2012. Following the release of iPhone 5 on the holidays, the iPhone maker took 72 percent of the industry profits. Meanwhile, Samsung’s share slid to 29 percent.

Due to a number of major catalysts in purview, Michael Walkley of Canaccord Genuity expects that both companies will retain their dominant shares in the industry for the foreseeable future.

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