Apple, Samsung together garner 108% of smartphone profits in second quarter

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A report from market research firm Canaccord Genuity has found that, somehow, Apple and Samsung hold 108% of the profits from global smartphone sales for the second quarter of this year.

This isn’t an error of math however, the figure was arrived at because other smartphone manufacturers are losing money. Apple, while only contributing 16.1% of the smartphones sold in the quarter, managed to rake in 71% of the profits. Samsung accounted for 37% of profits in the smartphone market, bringing the total percentage of the global market’s profits both companies earned to 108% thanks to operating losses being posted by RIM, Nokia, Sony and Motorola.

The two top companies in the smartphone arena rely on very different methods in retaining their places at the top of the market. Apple is heavily subsidised by carriers and the handsets remain extremely popular, allowing the company to bring in profit margins of between 49% and 58% per handset. Samsung, on the other hand, relies on easy availability and a huge volume to secure sales. The Korean company is seeing profit margins of 22% to 25% per handset.

Source: Digital Trends

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