They said that three years ago too. And they said it the next year and the year after.
The rest of the phone market is LOSING MONEY, CementJungle. There are only THREE phone makers making money. . . Apple, Samsung, and Xiaomi. . . and Xiaomi makes a profit only by stealing the intellectual property they use to make their phones.
Period | Samsung | Apple | Lenovo* | Huawei | Xiaomi | Others |
---|---|---|---|---|---|---|
Q4 2014 | 19.9% | 19.7% | 6.5% | 6.3% | 4.4% | 45.7% |
Q4 2013 | 28.9% | 17.5% | 6.4% | 5.7% | 2.0% | 39.5% |
Q4 2012 | 29.1% | 20.9% | 5.5% | 4.6% | 0.9% | 39.0% |
Q4 2011 | 22.5% | 23.0% | 5.1% | 3.5% | 0.1% | 45.7% |
As to "profit share", that's a silly term. In consumer tech, when your product is hot, you make money, along with a handful of other companies and everyone else loses money. When it's not, a handful of other companies make money and you lose money hand over fist along with the other also-rans. Nokia had a decade of being the king of cell phones. Motorola had over a decade of supremacy before Nokia. Apple is closing in on the end of its iPhone decade. Price compression will do to iPhone margins what it did to Mac margins in the mid-90's. Except the mid-90's Mac at least had the emerging markets to sell to, and the move of assembly operations to China, to prop up margins. Whereas the iPhone has been in the emerging markets, from both a sales and assembly standpoint, from the git-go.