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.
This was not an advertisement. You are outnumbered by approximately 600 other Freepers who are INTERESTED in what Apple is doing and prefer Apple computers and Phones. Jim Robinson has laid down the law about FLAME WARS and said NO to them. YOU are trying to incite a flame war. Who appointed you an ADMIN? STOP.
Boy, you got a lot of hate going on there. Apple does obviously make all the money in the smartphone industry. Samsung must reported its profits down about 50% in its smartphone product line at the same time Apple was way up. Of course Samsung “sells” more when the typical deal is like the suit store that says, “buy one get three more for free”. And there is the fact that Samsung stole the UI straight from Apple - just look at the pictures of all their phones with large physical keyboards just prior to the iPhone. But then Samsung is a serial stealer of others intellectual property and has been convicted for it. It is their business model.
“Fan boys”?? Interesting comment about you. Swordmaker points out an American company that is the global leader of all tech companies and looks to be positioned to extend this well into the future with new product lines that others will imitate, and it makes money which is good, and you deride it, at a site that supposedly likes free enterprise. You ought to become a capitalist fan boy. It would be good for you.
“Profits are high because their products are overpriced.Profits are high because their products are overpriced.”
Well, “Truth”, I’m not sure how you figure that. The iPhone 6 line is comparably priced to the flagship Samsung phones, and offers many superior features.
“Android has something like an 83% market share to crApple’s ~13%.”
Yep, clearly Kia cars are superior to BMWs.
“Besides, their products are WAY overpriced”
No. (See my previous post.)
“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.”
Not at all. I’m a fan of competition, and I’m glad Google, Samsung and the rest cloned the iPhone. That’s helped drive the industry. iPhones still have leading features, but the big difference is security (lack of malware) and respect for my privacy. Google wants your data.
“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.”
Your Note 3 uses three different toolkits for apps, which is widely regarded as a bad thing. Plus, plenty of Samsung crapware. Congratulations.
“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).”
The core features (just as with Android) haven’t changed. That’s because they work so well, why should they? Apple Pay will rapidly eclipse Android Wallet, the camera is state-of-the-art, and the processor and graphics are best in class. Oh, and don’t forget that the most apps are on iOS, and the best ones generally appear there first.
“And that OS is looking pretty ancient.”
“That OS” works well, and it’s a tribute that Android is now going to an ahead-of-time compiler for better performance. If you mean “look and feel” that’s a different thing, but Apple is the best in the world at user interfaces. The success of the iPhone reflects that.
agreed. This tells me Apple charges a whopper for their phones compared to the actual cost. Good for them. They get suckers to pay so much.
you are correct — they are not overpriced as the price is what many people (me excepting) are willing to pay.
I work with someone who develops apps for iOS and Android in her spare time. She absolutely hates the Android IDE and has told me repeatedly how much easier it is for her to develop for iOS. And she isn't a long-time Apple devotee but rather a Windows programmer by day.
Naked truth at last.
Linux will run natively as will windows if you use boot camp.
I have no love for the scum sucking lefties that populate Apples work force, but I have no love for the scum sucking liberals that populate Microsoft either.
Gun grabbers in Washington State just won big with the aid of Balmer's money.
Families that make it big rarely stay conservative although conservatism made their wealth possible. Sam Walton's spawn are a good example.
Incidentally My mother died 40 years ago, I was 36 at the time.
I don’t believe you.
I don’t need an iPhone to develop for iOS, genius. Never heard of iPod?
PC Magazine? I don't know of any serious IT/ITS person or developer who takes either of those two magazines seriously anymore. They're strictly consumer publications. And consumer publications are not respected in my trade; I'm sure Apple "computer experts" think they're great.
Your anecdotes are sacrosanct and other people’s aren’t, apparently.
How are the Chinese to keep them kids out of mischief?
Maybe they work in the mines instead.
Don't blame the machine because you don't know how to use it. That "playskool computer" was running Unix. Not *ix. Not "Unix-like." Fully POSIX-compliant Unix.
Fred knows that. He is just lying.
Sorry, Doc. He's already bragged he doesn't use Apple products.
You do if you want to develop the apps fully. Idiot. iPods don't have all of the features. . .
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