Apple and Samsung combined to make 100% of mobile device profits, but how?

May 6, 2013
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Samsung Apple

If you’re a mobile technology fan, you’ve come to know that Samsung and Apple don’t exactly see eye-to-eye. The two pillars of this industry have long held a distaste for each other they intend to satiate in court proceedings. Whether you love them or loathe them, they’re mammoth, and here to stay.

Even with the lawsuits, bad blood, and overall disdain for one another, their business doesn’t seem to be hurting much. A recent analysis by Cannacord Genuity suggests that all of the industry profit was made by Apple and Samsung. That’s right, 100% of the profits were absorbed by the two disparate companies.

You may be wondering how that could be, considering there are many other manufacturers in the mix. It’s really an anomaly of accounting practices. Let’s say Samsung and Apple combined to make $200 million, but HTC lost $30 million. If LG, in turn, made a profit of $30 million, it washes the HTC loss, meaning Apple and Samsung made 100% of the profits.

In the past, the two have combined to make over 100% of the profits, so in a weird way this is good for everyone else. It means the overall health of the industry is improving, even with Samsung and Apple running roughshod over everything. While it’s still not as level a playing field as we’d like, it’s good to know those smaller companies are making strides to whittle out their own corner of the marketplace.

Comments

  • http://riteshtripathy.wordpress.com/ Ritesh

    That’s terribly lame accounting and still doesn’t explain how Apple & Samsung make 100% of the industry profit.

    • wakefinance

      Revenues are different from profit. Whenever a company sells a product, they make revenue. Revenues only become profit when they exceed expenses. Only Apple and Samsung had revenues exceeding expenses.

      • http://riteshtripathy.wordpress.com/ Ritesh

        Oh well. We learnt that in high school economics. Just FYKI, HTC are also profitable and always have been. Only four of the major smartphone OEMs are profitable – Apple, Samsung, HTC and now, LG.

  • st0815

    That’s basically nonsense. They make 100% of the combined losses and profits in the market. Which is useless info, since – without supporting information – it doesn’t tell you anything about their performance.

    • Anonymousfella

      Exactly my point…your words ” without supporting information” remind me of a quote- “Statistics are a smart way to lie”.

  • kascollet
  • http://www.facebook.com/people/Jess-Losaria/732854045 Jess Losaria

    samsung’s profits are actually up while apple has declined, it will be interesting what will happen after the s4 sales will be included in the data

    • John Mortimer

      Has Samsung as better deals with all networks and in most cases better than apple (apart from some USA networks) than they did with gs3, I be thinking its going to go up big time, plus less ads, I have noted many less ads in the UK on TV, Sony does the most and its a good ad, its just not needed apart from the USA the phone just sells out
      On a small note Samsung never gives apple any ad time in the UK, it just not needed