Apple and Samsung combine to collect 99% of mobile phone profits

By on May 4, 2012, 5:30 PM

Apple and Samsung have combined to collect an astonishing 99 percent of mobile phone operating profit. Individually, Apple accounted for 73 percent while Samsung amassed the remaining 26 percent. HTC mustered 1 percent of operating profits in Q4 2011, as reported by Asymco.

The results are directly in line with Cupertino’s recent earnings call where the company posted a net profit of $11.6 billion, or $12.30 per diluted share. Unsurprising enough, iPhone sales were responsible for the majority of profit in the quarter, a figure that rose 88 percent year over year.

While Apple and Samsung are riding the current wave of success, HTC and longtime manufacturers Nokia and RIM are seeing their profits continue to dwindle away. Five years ago, Nokia had a profit share that was nearly the size of Apple’s but the roles have since been reversed with Nokia barely making a blip on the proverbial radar now. HTC never really had a huge market share but what they did have is also slipping away.

As Asymco notes in their report, it’s not a case of the top two companies taking a fixed “share of profit” simply because available profits aren’t a constant. It’s the same logic behind the flawed idea that the rich are taking all of the money in the economy, leaving less for the middle class and poor. The company report highlights that Apple instead created a “vast new pool of profits” that came mostly from carrier premiums from the iPhone 4S.

User Comments: 5

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Guest said:

Who is SE?

And I know Motorola died but where is it on this chart.

bielius bielius said:

SE stands for Sony Ericsson, and yes, this company existed someday.

9Nails, TechSpot Paladin, said:

Profit shares? Guess Motorola is breaking even or sold at a loss Guest.

We all knew that Apple is a luxury brand with astronomical price. This really drives that point home. But with NPD showing Android phones now make up 61% of sales, Apple might need to lower their price and compete in an arena that they once dominated.

mario mario, Ex-TS Developer, said:

We all knew that Apple is a luxury brand with astronomical price

Really!? astronomical price? The iPhone is available for $200 USD carrier subsidized and you can get the iPhone 4 for $99.

Apple shouldn't change anything, you did read how much profit they are making compared to everyone else? And of those 61% of Androids sold they can't even get profits near 30%.

Yeah sure Apple is the one that needs to change.

SNGX1275 SNGX1275, TS Forces Special, said:

The iPhone is available for $200 USD carrier subsidized and you can get the iPhone 4 for $99.

My girlfriend just went from a 3GS to a 4 (not 4S) this weekend and was expecting it to be $100. The guy (at Radio Shack) said it rang up for $50 (apparently a $50 credit came up at same time). I don't know anything more than that, but I know she walked out of there with a non-refurb iPhone 4 for $50 and a 2 year contract.

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