Only Apple and Samsung make money out of smartphones
Only Apple and Samsung are making money from smartphones and Apple is losing ground fast.
According to beancounters working for Canaccord Genuity, Apple accounted for 75 percent of the smartphone industry’s profits in the second quarter, but that’s down from more than 90 percent a year ago due to Samsung’s Galaxy device success.
Samsung’s Galaxy S7 launch and the Note 7 follow-up likely indicate that profits will continue to do well,.
Cannaccord Genuity analyst T. Michael Walkley said that Apple’s industry profit was also suffering because punters were delaying purchases ahead of the iPhone 7 launch. Although it is a moot point if that particular product will do well. Either way Samsung has captured more than 30 percent of industry profits in the second quarter.
Walkley said that Apple’s industry profit share is at its lowest point since the second quarter of 2014 before the iPhone 6 launched.
However it does look like all the other makers trying to get in the high end of the market are not scratching the surface.
Walkley said: ” Given the ramp of Chinese OEM smartphone volumes and particularly strong 2015 smartphone market share gains for Huawei, we note our industry profit analysis excludes a large portion of this group of OEMs gaining an increasing share of the smartphone market profits due to the lack of available and comparable profit metrics. While this likely overstates Apple’s profits, we note some leading smartphone OEMs in China are growing global market share through aggressive pricing strategies limiting near-term profit levels. Inside the Greater China region, share has shifted to Chinese OEMs as well. In fact, in Q2/C15 Apple was number 1 vendor of smartphones in China, and we now believe in Q2/C16 Apple fell to the number 5 vendor behind Huawei, OPPO, Xiaomi and VIVO.”