Apple and Samsung take all of the handset profits
Once again, combined Apple and Samsung take all of the profits in the Smartphone business. According to a new Canaccord Genuit report which was released yesterday, Apple takes 57% of the profit, while Samsung takes the remaining 43%. Combined, both companies received 100% of the handset profits for the first quarter of 2013. Despite the positive results, Apple is losing a pace. If we compare the results of the first quarter of 2013 with the last quarter of 2012, there is a decrease of 15%. At the same time, Samsung has increased its operating income by 14%.
There is also a tendency both biggest players to reduce their combined share below 100%. For the whole 2012, the report indicates that their accumulate share was 103%, compared with 100% in the first quarter. The huge number of 103% in 2012 was actually influenced by the losses incurred by some of the other players on the market during the last quarter of 2012 – like Motorola, BlackBerry and Sony. For example, BlackBerry had an operating margin of -11% in Q4, leading to total margin of -3% for the whole year.
In contrast, Samsung has registered a growth of its handset profit share from 29% in Q4 in 2012 to estimated 43% in Q1 in 2013. Samsung’s margin has also increased – from 20% to 22%. Except Samsung and Apple, many of the players on the market broke even – BlackBerry, Nokia, Sony and HTC have 0% of value share. Only LG has a positive share of 1%. Motorola’s value share is negative -1% and company’s margin has hit the bottom with -18%. The other players, except Apple and Samsung operate with a very thin margin of 1%, according to the latest estimates. Only LG has increased their margin from 2% to 4% for Q1 in 2013.