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apple grabs 93% of the handset industry’s profit, report says - samsung
Apple’s record-
According to a new report from investment firm Canaccord Genuity, the holiday quarter generated $18 billion in revenue, enabling the company to earn 93% of the profits in the mobile phone industry.
Samsung took the remaining share, the report said, but its share is shrinking.
A year ago, Canaccord Genuity's industry profit report estimated Apple took 87.
In the fourth quarter of 2013, Samsung's mobile phone revenue accounted for 4%, while Samsung accounted for 32.
2% of the industry's profits. (
That added up to more than 100%, as Apple and Samsung combined more revenue than other competitors lost. )
The report acknowledges that this may exaggerate Apple's profits, as it does not include estimates of some Chinese suppliers such as Xiaomi. Xiaomi is one of the largest smartphone manufacturers in China and the largest in the world
The report states that since Xiaomi, a private company, did not disclose its profit figures, no estimates could be made.
However, Xiaomi's profit model does not depend mainly on smartphone sales.
The price of the company selling mobile phones is almost the same as the price of materials purchased and assembled.
To make money, Xiaomi focuses on selling apps, games and special Android OS themes and Internet services.
As a result of the report, Samsung is losing its edge in the fight against Apple for smartphone dominance.
Samsung still sells more phones than any other company.
But Apple's profits are falling as it erodes its high sales.
After the great success of the iPhone 6 and iPhone 6 Plus, this trend may continue.
Both iPhones, including the big screen, have greatly boosted Apple's development in China, which is an important market for Samsung.
Mike Buckley, an analyst at Canaccord Genuity who wrote the report, said he expected Apple to have nearly a billion iPhone customers by the end of 2015.
If Apple continues to earn high returns
He added: "Samsung will be the most affected manufacturer of Android smartphones.
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