Apple claims 87% of smartphone profit share, Samsung holds 32%

iPhone 5S Front

Profit share is another way to tell which competitors in an industry are doing well. With the smartphone market, Apple and Samsung hold more than 100% of industry profits — meaning that other players are losing money. According to Patrick Seitz of Investor.com, Apple holds 87.4% and Samsung comes in second, with 32.2% of all profits.

Apple (AAPL) and Samsung continue to soak up all the industry’s profits, McCourt says. Apple claimed 87.4% of phone earnings before interest and taxes in the fourth quarter, he said. Samsung took in 32.2% of industry profits. Because their combined earnings were higher than the industry’s total earnings as a result of many vendors losing money in Q4, Apple and Samsung mathematically accounted for more than 100% of the industry’s earnings.

[Investor.com]

Post a response / What do you think?