Member Sign In or Register
Survey: Apple and Samsung swallow 90% profits in smartphone industry
Survey: Apple and Samsung swallow 90% profits in smartphone industry
By: iMedia News Bureau

The smartphone sector continues to be dominated by giants like Apple and Samsung. According to a latest research from ABI, titans of smartphone market made up 90% of the entire smartphone industry’s profits in the first quarter of 2012, and also hold 50% of the smartphone market.

ABI calculates that smartphone shipments grew 41% overall to 144.6 million units in the March quarter.

In Q1 2012, Samsung shipped 43 million smartphones globally, with Apple coming in second with 35 million devices. Samsung has been the only truly profitable Android manufacturer for some time, and its continued success seems to indicate that Android is a bad money-maker for anyone not at the top.

The two companies left everyone else way behind when it comes to total smartphone shipments: Nokia (11.9 million,) RIM (11.1 million,) Sony (7 million,) and Huawei (6.8 million). When it comes to revenue, Samsung pulled in $17 billion from its combined mobile division during the period, with Apple mobile sales amounting to $22.57 billion ($29.3 billion counting iPad sales).

Only Samsung and Sony experienced sequential growth in global shipments from the previous quarter, while Nokia saw a 40% drop, bringing it closer to RIM, which saw a 20% decline. Analysts see a grim outlook for Nokia this year. The company is cutting 10,000 jobs and has sold its Vertu division of luxury handsets.

Apple and Samsung are two companies which are extremely different from each other. Samsung sells a plethora of smartphones running on three different operating systems including Android, bada, and Windows Phone. The bulk of its mobile operation surely comes from Android device sales. When it comes to Android smartphone sales, Samsung also offers customers a wide range of devices, from the high-end Galaxy S family of flagship smartphones to mid-ranged and low-end handsets meant to be a lot more budget-friendly. 

On the other hand,Apple only sells smartphones running a single operating system, its in-house made iOS, and they are all part of the iPhone family. The company does not have mid-ranged to low-end smartphones.