Apple Cellphone Profit Share Ping!
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Posted on 11/04/2014 10:25:38 PM PST by Swordmaker
A new analysis of third-quarter handset industry operating profits estimates that Apple accounted for a massive 86 percent share, blowing away the competition as rivals such as Samsung saw their profit levels dip.
Analyst Michael Walkley of Canaccord Genuity issued a note to investors on Tuesday, a copy of which was provided to AppleInsider, in which he revealed his latest research, based on company reports and estimates. Walkely said that Apple's estimated 86 percent share of industry profits was simply "remarkable."
Apple's gains came at the cost of competitors, most notably Samsung, which was estimated to have accounted for just 18 percent of the industry's profits. That's the lowest total for Samsung since 2011, Walkley said.
Still, Apple and Samsung combined for more than 100 percent of the industry's total profits, because competitors such as Motorola and Microsoft actually lost share. In fact, other than Apple and Samsung, the only other company to have a positive value share in the September quarter was LG with 2 percent, according to Walkley.
HTC and BlackBerry are estimated to have accounted for 0 percent share in the quarter, essentially breaking even. And Motorola with an estimated mobile operating loss of $185 million is said to have accounted for -2 percent, while Microsoft's $341 million estimated lost in handsets gave it -4 percent of the industry's profit value share.
In all, Walkley estimates that the handset industry saw operating income drop 17.3 percent year over year. The analyst did note that the increasing popularity of Chinese smartphone makers are not included in his estimates, due to a lack of available data on sales and profits.
Walkley also conducted a series of surveys in October in the U.S. which revealed that the iPhone 6 and iPhone 6 Plus were by far the top selling smartphones at all four major American carriers. The survey also found that users are gravitating toward higher-capacity iPhone models, which he believes will bode well for the device's average selling price in the current December quarter.
"We believe Apple is experiencing a record iPhone 6 upgrade cycle due to very strong replacement sales as well as from high-tier smartphone market share gains from Android," he said. "We believe these trends should result in very strong (fourth quarter of calendar 2014) smartphone sales and share gains for Apple.
Canaccord Genuity has maintained its $120 price target and "buy" rating for AAPL stock.
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Profits are high because their products are overpriced.
Why would anyone buy the IPhone 6 when the much better rated Galaxy Note 4 sells for less?
I hate Apples products but I love the money I make off their stock
Not possible. As an economist by education and training, I can assure you that what you claim is an oxymoron. They are selling every one of their products they can make.
A price is what is agreeable between a willing seller and a willing buyer. Apple was having trouble providing sufficient inventory to supply the numbers of willing buyers for its iPhone 6 and 6 plus at the price they were asking. . . and as of now, the delivery time on both models is measured in weeks from order time. If Apple's products were overpriced, they'd be piling up in the warehouses unsold like the products that Samsung is being left holding and cannot sell. . . and why Samsung is posting 65% lower profits for the last three quarters while Apple is posting record sales and record profits. . . and claiming 86% of the handset profits. . . ALL handset profits.
They are also claiming 53% of all Personal Computer profits. . . and that is also not because their computers are overpriced either. In fact, the number of Macs was increased by 18% this last quarter over the same quarter last year, as public demand for Apple's "high-priced" premium computers went UP, while the overall PC market went down 7%.
So, TruthWillWin, how can they be "over priced" if willing buyers in droves are plunking down their hard-earned money to buy them without complaint. . . and falling all over themselves to do so?
I have found my Samsung Galaxy to be hardier than my iphone ever was.
Samsung Galaxy Note 4 Unlocked — $825.99.Apple's Prince for an iPhone 6 unlocked — $749.00
Rating. . . Not necessarily. Specs lists do not mean it is a better phone. Most reviewers give the better phone nod to the iPhone 6 Plus.
Android has something like an 83% market share to crApple’s ~13%. Besides, their products are WAY overpriced and lack features that were standard on Droid phones two years ago. Samsung and Droid have lapped them about five times in the past two years. crApple is no longer a visionary, or trendsetter, but merely a follower. And my Note 3 is STILL a quarter-inch bigger than their “biggest” iThing.
But they still have a lot of lemmings that continue to buy their junk which essentially possesses the same features they overpaid for last year (and the year before, and .. lather rinse repeat). And that OS is looking pretty ancient.
Why do you hate Apple's products? Have you ever used them?
Their products are overpriced in terms of capability per dollar spent. Your so-called economics argument amounts to nothing more than an admission that there’s one “of you” born every minute.
Not in any of the the comparative reviews that I've read. The Galaxy Note 3 is STILL far more advanced and feature rich than even the newest iThing. Maybe iThing 7/9/11/37 will catch up to the Note 3 next year. Except there's now an even more advanced Note 4 already available. crApple just can't keep up.
False.
I absolutely love it when clueless fanbois show up to rave about iEvil’s fabulous profitability, without realizing what they’re actually saying is: “I am being ripped off by the biggest charlatans on the planet — and I hope they steal even more of my money on their next years-behind-Samsung ‘update.’”
Exactly. I was forced to use a crApple computer at one of the places I was contracting. HATED that proprietary playskool computer! Couldn't wait to get back to my Linux and Windows machines where I could hack the hell out of and do what *I* want with it!
I love how crApple devotees that I have talked to are so adamant that crApple junk is "so much better and so easy to use." Thing is, most crApple fans that I have encountered could barely plug in and turn on a computer on their own. Hence the need for that playskool proprietary garbage.
Sorry. Not a fan!
Then again .. I still have a fondness for DOS and UNIX commands, so ..
The most annoying thing about my Iphone is the music algorithm.
My old Android HTC would never play a song by the same artist twice in a row, no matter where I started in my playlist.
With my Iphone, I always know that if it plays a song by an artist, the next song will be by that artist also. In addition, if I start on the same song every time, the Iphone plays the playlist in the same order every time. My Android always played a different order, even if I started my workout on the same song each time. The true randomness of the Android algorithm made it much better than the Iphone, IMO.
That being said, the hardware and the software/apps are more polished on the Iphone than the Android phones. I just wish AT$T didn’t suck so back...but work pays the bill, so I can’t complain too much.
I too own AAPL, but wish they’d go back to the days of being the leading edge in innovation. Hardware performance and software polish don’t excite me as much as customization and cell reception.
No big fan of Apple. Been using Windows since DOS 1. But after today with Bill Gates and Steve Ballmer putting in big bux in support of I-594 in Washington state, gungrabber’s initiative, I hope I never have to buy another Windows product ever.
The development toolchain is crap [state of the art for, like, 1987] and the cut Apple takes out of your net is disgusting.
How's this for evil: you want to develop an app to be used by you and only you, on your own phone? You must pay $100. Oh, plus $99 for the developer program. Or maybe $299 if you're a corporate developer. Or maybe, even more if your corporation provides your phone, in that case you must be bound to their B2B program for putting an app on your own phone. Oh yes, and by the way, you may not develop this app on anything but a Mac. Even a virtual machine running OSX will violate your developers agreement. If you criticize Apple for making you do that? It also violates your developer's agreement.
Essentially, if you develop for iOS, you become Apple's cubicle slave. If your software company develops for iPhone, they become a subsidiary of Apple.
Response from the fanbois: "There's nothing wrong with that. If you don't like it, don't have an iPhone." OK, that's just one of the many, many reasons that I don't.
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