updated 08:20 am EDT, Tue May 1, 2012
Apple gross margin per device dwarfs Samsung
Data released by UK’s Juniper Research shows that although Samsung has retaken the smartphone sales lead from Apple, with 42.2 million sold against 35.1 million, Apple is easily leading in terms of revenue from mobile sales. It estimates that Apple’s mobile revenues were $29.3 billion, when including the iPad. By comparison, Samsung’s revenue from all mobile devices including feature phones came in at $17 billion.
The stark difference arises from the gross margin that each company makes from its mobile device sales. Samsung’s gross margin is at just 12.9 percent overall, which is in some part due to its willingness to compete at the lower end of the market where margins are tight. Apple’s gross margin remains the envy of the tech industry at a significantly higher 47.4 percent.
Interestingly, Juniper Research proposes that there is still room for a third-party to take a significant share of the smartphone and mobile market. Although between them Apple and Samsung have stitched up 60 percent of the mobile market, which increased from a combined 46 percent share in Q4, a third force could still take a large slice of the smartphone market if it could gain momentum and market traction. [via TechCrunch]