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

May 6, 2013
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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.

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