Apple and Samsung, though normally sworn enemies in the courtroom, are mighty forces when they combine powers — and by powers, I mean profit. It turns out the two smartphone vendors account for a whopping 95 percent of profit in the entire mobile industry.
Canaccord Genuity proclaimed these results just recently in a new study. Apple alone holds 80 percent of the profits. That shouldn’t be too much of a surprise considering its enormous freakin’ market cap. Samsung takes the other 15 percent. As for the remaining 5 percent, well let’s just say Motorola, HTC, LG, RIM, Nokia and all the other competitors aren’t doing so hot.
Apple quite obviously hit a home-run with the iPhone. There are plenty of Android users that would argue Android is already far superior to iOS and handsets such as the Galaxy Nexus blow the iPhone away. Superior or not, no single Android phone or line of phones have been able to even come close to the iPhone in terms of success and profits. The only line to hold its own has been Samsung’s Galaxy S, which explains Samsung’s macroscopic profit share.
Apple and Samsung dominate the industry now and it looks like that won’t be changing any time soon. “With our checks also indicating strong share gains for Samsung during the March quarter, we estimate Apple and Samsung could improve sequentially on their amazing 95 percent share of handset industry profits,” said Canaccord Genuity analyst Michael T. Walkley. “With the recent dividend and buyback program likely to attract new investors, Apple remains a top pick.”