LG, Motorola and other Android manufacturers are not profiting, analyst says

by: Wenceslaus MuenyiNovember 14, 2012

The latest news on the wire is that only three smartphone manufacturers in the entire industry were profitable in the third quarter of the year. According to a recent tweet by market analyst Horace Dediu, the smartphone market is largely dominated by Apple and Samsung with HTC being a distant third, when it comes to smartphone profits.

Apple, being the first with 60% of the profits, is known to have extremely brilliant margins on their smartphone and accessories sales, so it is no doubt that the company is making money—plus the iPhone 5 did not do too bad in sales. Samsung, in second place with 39% of the profits, makes great devices and is currently leading the Android market with the Galaxy S3 that sold over 30 million units. On the third position with just 1% smartphone sale profits, we find HTC, which is struggling to meet expectations.

Ultimately, this report means that LG, Motorola, and other manufacturers are still not able to profit from their smartphone sales. With this in mind, it makes sense why Google might have picked LG to produce the newly released Nexus 4, to help them boost their profit so they will not fall off the map like BlackBerry famously did.

Let us hope that news like this will motivate the non-profitable manufacturers to create better devices that will improve their sales.

  • carlisimo

    If it’s such an unprofitable business, is it too early for Google to try to cut product margins with its Nexus pricing strategy? It’s hurting its manufacturers more than it’s hurting Apple.

    • MikeCiggy

      Google’s goal is to get Android in front of as many people as possible.

    • qadeer

      I totally agree with u. Why the hell on earth Google decided to sell Nexus 4 at such a low price. Now who would like to purchase LG Optimus G, which was, a few days ago, the best smartphone on planet.

  • Girish

    What about Sony?