Apple and Samsung Account for 99% of Profits in Mobile Phone Industry

Apple and Samsung might be fighting it out with each other for the top spot in the smartphone market, but the companies form a deadly duo when put together. When you combine the two consumer electronics makers, Apple and Samsung accounted for 99% of the profits among the top mobile phone vendors during the first quarter of 2012.

According to data from Asymco analyst Horace Dediu, Apple held 73% of the profits, Samsung claimed a 26% stake, and HTC accounted for the final one percent of profits. LG, Sony Ericsson, Motorola, Nokia and BlackBerry makers Research in Motion, on the other hand, failed to post a profit on their handset businesses in the quarter.

During the first quarter this year HTC, RIM and Nokia all surprised investors with bad news. The effect is evident in the share price of these companies which, in the case of RIM and Nokia is around book value, and in the case of HTC, neared 12 month lows and a 70% drop from peak.

These “misses” in earnings and expectations are on top of the already woeful news from Sony Ericsson and Motorola, which have not had profits for years and LG, which has been borderline since late 2009.

The days where the mobile phone industry was led by Nokia and Research in Motion are long gone, but each company is attempting a comeback with the Nokia Lumia 900 and BlackBerry 10 respectively. However, with the groundbreaking success of the iPhone 4S coupled with Samsung’s launch of the Galaxy S III, any Nokia or Research in Motion handset is going to face considerable competition.

[Asymco via Fortune Tech]

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