Apple and Samsung are without a doubt the top dogs in the cellphone market. In 2012, both companies managed to grab most of the market share, recording an insane 103 percent in cellphone profit, according to Cannacord Genuity’s estimates.
These bitter rivals were able to obtain this seemingly impossible number from the failures of companies like BlackBerry, Nokia and Motorola — all three operated at a loss last year. Samsung has the lead in market share (far as the volume of phones sold), but only snagged 34 percent of the profits from the cellphone industry. Unsurprisingly, Apple saw a lower market share than Samsung, but enjoyed double the profits with 69 percent.
Cannacord analyst, Michael Walkley, had the following to say about Apple:
“We believe Apple’s value share of the handset market is even higher than our estimates…considering Apple’s dominant market share of the tablet market, as some Android OEMs such as Samsung and HTC include tablet sales in reported smartphone sales and profits.Given the current competitive dynamics, we believe Apple and Samsung will maintain dominant value share during Q1/13 with share gains for Samsung versus Apple expected in Q1/13.”
Apple’s profit numbers will only grow with the iPhone 5, as more people begin to upgrade out of their older iPhones. However, Samsung continues to gain on Apple, and should make things interesting this year as it readies the announcement of the Galaxy S IV. We’ll all stay glued to the market as these two heavyweights battle for supremacy.