updated 03:06 pm EST, Thu November 14, 2013
Analysts estimate Samsung, Apple take more than all profits
Samsung and Apple together combine to take in 109 percent of profits in the smartphone sector, according to a new report. Cannacord Genuity released a report this week saying that the two tech giants take more than all of the profits in the segment, a figure they arrived at due to the continuing operating losses of their smartphone industry competitors. Previous studies by Cannacord had Samsung and Apple combining to take only 100 percent of the profits in the segment.
Taken together, the two companies account for almost half of all smartphones shipped worldwide. The rivals reach that considerable figure from different paths: Samsung ships a wide array of phones with different price points and form factors, while Apple updates its offerings once per year with a new phone.
Apple continues to take in the lion's share of profits in the industry. Its iPhone pulled in 56 percent of Q3 '13 profits, up from 53 percent in the second quarter. The report predicts that strong sales for the new iPhones will likely only increase Apple's profit share compared to its competitors.
Meanwhile, their competitors' losses continue to mount. BlackBerry, LG, HTC, and Motorola continue to show operating losses as Samsung takes up most of the space in the Android segment, while Apple attracts most consumers that would be looking for a high-end smartphone.
Cannacord's report does not take into account the device sales of companies like Huawei, Lenovo, and ZTE. Those companies do not make their profitability data available, and so they could not be included in the analysis. [image via Phandroid]