Samsung has been killing it in terms of mobile market share, but Apple still leads the way when it comes to profitability. Actually, when you really look at it, Apple and Samsung are the only companies actually making a profit from mobile according to Canaccord Genuity. For the first quarter 2013, Apple took in 57% ($8.03 billion) of the total profits made from mobile, while Samsung came in second with 43% ($6.02 billion). If you’re doing the math, you will notice that the total combined is 100%, which ironically is down from 101% for the 4th quarter 2012. The rest of the manufacturers either broke even, had losses, or very small profits.
The fact that Samsung and Apple are controlling the profits is just part of the story. Countless market share reports have shown Samsung to be winning in terms of units sold, but so far it isn’t translating into pure profit. If you look at the trend though, Samsung is poised to take the lead soon. Looking back at the 4th quarter 2012, Apple led the way with 72% ($12.26 billion) of the profits and Samsung came in second with 29% ($5.03 billion). In looking at quarter vs quarter, Apple dropped 15% while Samsung went up 14%. Samsung still has a ways to go, but there is no reason to believe Samsung’s growth is going to slow down anytime soon. The fact that the Galaxy S 4 was approved by the U.S. Department of Defense is just another indicator that they are moving full steam ahead.
source: Barrons
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