Samsung and Apple Grab 99 Percent of Profit in Mobile Phone Industry
Samsung and Apple combined have an astonishing 99 percent of operating profit share in the mobile phone industry. Samsung accounted for a modest 26 percent, while Apple amassed the remaining 73 percent. HTC took the third place with only 1 percent of operating profit. The data is revealed by Asymco and it reflects figures for Q4 2011. The result is in line with massive Apple’s profitability as the company posted a huge net profit of $11.6 billion. Unsurprisingly, iPhones contributed for most of the profit.
Both companies are riding the continuous wave of success in the industry, while once powerful manufacturers, RIM and Nokia are seeing their money disappears into the sinkhole. Before the Phone era, Nokia also got most of the profit share in the industry, but the role has since been reversed. Many analysts blamed Nokia for failing to make a quick and convincing response to the original iPhone in 2007. Asymco reminded that the share of profit is not a constant value and it changes over time. The report also highlighted the fact that Apple’s iPhone profits came mostly from carriers premiums.