Thursday, May 8, 2014

Apple And Samsung Have 106% Of The Smartphone Industry's Profits

In the smartphone business, some things haven't changed: Samsung and Apple continue to represent the only two smartphone suppliers that actually make profits on sales of smartphones.

Apple earned 65 percent of smartphone profits while Samsung earned 41 percent, in the first quarter of 2014, according to Canaccord Genuity.

Whether Nokia, Motorola, Blackberry and HTC can move from losses to gains is not clear. Nor is it clear when that might happen. 

Recent moves by leading U.S. mobile service providers away from device subsidies is not going to help, as those moves could, or should, depress the rate at which customers replace their smartphones. That implies lower sales turnover, which would not help efforts to improve profit margins. 

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