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Apple and Samsung Dominate Smartphone Profits

Apple and Samsung Dominate Smartphone Profits

According to a new study released by Cannacord Genuity, Dominate is putting it lightly.

Apple and Samsung Dominate Smartphone Profits

They reported that Apple and Samsung again combined to capture all of the operating profits in the handset industry in the first quarter of 2013. In other words, there isn’t a single other device maker competing in the mobile industry right now that’s actually nabbing operating profits. We find this a bit hard to believe? Are they saying the likes of Sony, Motorola and Microsoft are making losses?

Nevertheless, according to this report, Apple generated 57 percent of the handset industry’s profits during the first quarter, leaving 43 percent to Samsung. Apple previously owned 72 percent of industry profits in the fourth quarter of 2012, indicating Samsung is coming on strong. Cannacord expects Samsung to gain even more share in the second quarter.

One other interesting note from Cannacord’s findings: Apple’s iPhone 5 was the top-selling smartphone between January and April at AT&T, Verizon, and Sprint. Samsung’s Galaxy S3 was tops between January and March at T-Mobile, but in April when the company started carrying Apple’s iPhone 5, that handset took the lead.

Personally we feel that if any of these losing companies want to start getting “in” on the money-pie, they need to take note that Apple and Samsung sell the same model of phone across all carriers.  No AT&T specific iPhone, no GS3 on Verizon with a feature not available at Sprint while the Sprint version has something T-mobile does not have.  If you would like to take a piece of those profits you need to make your phones available to everyone and simplify your phone lineup.

The report seems to be applicable to the US only.