Apple And Samsung Have '108% Of Industry Operating Profits'

Business Imsider ^ | AUG. 5, 2014, 10:45 AM | Jay Yarrow

[Swordmaker]

This is a fun, quarterly chart based on company reports and data from Canaccord Genuity, a Canadian investment bank. It shows the relative share of each major smartphone maker based on their operating profits.

Since just about every company other than Apple and Samsung is losing money, Canaccord analyst Michael Walkley says, "Apple and Samsung once again dominated handset industry operating profits and combined to capture a remarkable 108% of Q2/14 handset industry profits as other leading OEMs such as BlackBerry, Nokia/Microsoft, and Sony posted operating losses or near breakeven results.”

[Swordmaker]

Apple takes 68% of Cellular phone handset profits. . . Samsung takes 40%.! Total 108% while all other makers lose money. PING!

Apple and Lion's Share Profits Ping!

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[doc1019]

Educate me ... how can you have more than 100% of anything?

[Pox]

It looks like they got to that number by including the losses incurred by the other vendors, and Nokia in particular.

[Swordmaker]

Easy. . . Because the other players are losing money. There are negative numbers involved in the equation. These producers are pushing product out the door at a loss. . .

These are "operating profits," not final profit numbers. When you adjust for those, it's slightly different. Another report showing the previous quarter:

"Canaccord’s last report (first quarter 2014) showed that Apple and Samsung had 106% of profits combined, with Apple collecting 65% and Samsung only 21%. The numbers aren’t much different this time around except that Samsung is actually on the decline while the iPhone is on the rise. Source.

[Swordmaker]

I think that source had a typo. . . Samsung’s share should show 41%.

[okie01]

Educate me ... how can you have more than 100% of anything?

When the remainder of the industry is operating at a loss.

[BenLurkin]

Creative accounting.

[doc1019]

TY, I just love the education I receive on FR.

[GeronL]

That is some marketshare

Apparently when Microsoft purchased Nokia, they killed Nokia

[GeronL]

besides being bought by MS.... what happened to Nokia?

[avenir]

I need Apple to use some of their profits to get those Samsung Tab screens in the next iPad! I was doing a side by side at Sam’s the other day and they made my Air screen look kinda weak, lol.

But no way would I ditch iOS for that Touch Wiz mess.

[House Atreides]

Some of these companies have adopted the old “we lose a little on each unit, but we make up for it in volume”. Funny how that usually doesn’t work out long term.

[RginTN]

my eldery parents just got Iphones(for free)and they have no clue what the cloud is.

[Swordmaker]

I need Apple to use some of their profits to get those Samsung Tab screens in the next iPad! I was doing a side by side at Sam’s the other day and they made my Air screen look kinda weak, lol.

The AMOLED screens are impressive, but their color gamut and accuracy leaves a lot to be desired. Apple goes for color accuracy to reality, not for super-saturated colors and depth. Color temperature is way too high on the Samsung and the RGBCMY and Greyscale Delta Es are also way too high for accurate color reproduction.

[caver]

108%? That’s like 57 states!

[csvset]

[dangerdoc]

They kind of misjudged the whole transition to smart phones.

[newfreep]

"These producers are pushing product out the door at a loss. . . "

...but they make it up in quantity!

[newfreep]

I've had my new LG-G3 for 10 days and absolutely love it. The large 5.5" screen helps my aging eyes and the Quad HD resolution is spectacular! (h/t Terry Hatcher)