Apple: "20 % market share, 92 % of branch's profit"

92 % of all the profit the estimated 1,000 smartphone manufactures gather worldwide, is for Apple. It can thank its extremely high profit margins for the profit, as the iPhone manufacturer only has a 20 % market share.

Only Samsung can somewhat tag along

Business bank Canaccord Genuity has published these remarkable numbers in a recent study. Although there are some 1,000 smartphone manufacturers, two of those seem to run away with all profits: Apple and its eternal competitor Samsung. Apple apparently gets 92 % of all profits, while Samsung has to be satisfied with 15 %.

 

Both giants get more than 100 % of profits, which means that most other manufacturers operate at a loss (of break-even at best). According to Canaccord Genuity, Microsoft has had to take a 4 % loss, which explains why the company has just buried its mobile division.

 

One thing to remember when looking at these numbers: the business bank only considers profit from smartphone sales and ignores any smartphone-related income. That may include paying apps (like with Xiaomi and Microsoft) or component manufacturing for other smartphone manufacturers (like Samsung, which is a huge supplier for ... the iPhone).

 

Nokia comeback through brand license

Poignant detail: when Apple launched its first iPhone in 2007, two thirds of the cellphone market's profit went to the Finnish Nokia. It was the world's largest cellphone manufacturer for 14 years, but it completely missed the smartphone market.

 

The Finns are vying for a comeback though: Nokia believes "the soonest that could happen is Q4 2016" as that is when the Microsoft license deal ends as agreed when it sold its smartphone branch. Whenever Nokia returns, it will not build its own smartphones, as it does not own any factories anymore. It will give another manufacturer a "brand license", similar to what it did with the Nokia N1 Android tablet. With that statement, the Nokia spokesperson pretty much guaranteed the company will ditch Windows as an operating system and use Android instead.

Questions or comments? Please feel free to contact the editors


Carrefour and Fnac Darty consider purchase alliance

01/12/2017

Supermarket firm Carrefour and electronics seller Fnac Darty are considering an alliance for their electronics acquisitions. The combination could lower purchase prices.

Media Saturn launches a first, fully virtual shopping world

21/11/2017

Saturn customers can use their own VR goggles to see products in two virtual environments. It is not yet possible to actually buy something in VR however.

Pieter Haas, CEO Ceconomy: "We sell the consumer a digital life"

03/11/2017

MediaMarkt’s parent company, Ceconomy, has the key to consolidate the European electronics industry even more. The retailer will sell services and solutions: “We help people make the right decisions.”

Ceconomy continues growth in transitional year

26/10/2017

Ceconomy, a former part of German Metro Group, achieved a 4.6 % fourth quarter turnover increase to 5.264 billion euro. Media Market’s parent company mainly made strides online.

Fnac Darty grew 6 % in third quarter

20/10/2017

Fnac Darty has raised its third quarter turnover by 6 % to 1.792 billion euro, with growth in the Benelux as well. The company also revealed the integration of both companies is ahead of schedule.

Samsung CEO resigns despite record profit

13/10/2017

South Korean Samsung has managed a record profit in its past quarter thanks to strong chip sales. However, one of its three CEO’s still decided to resign.

Back to top