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Apple Captures Record 91 Percent of Global Smartphone Profits: Research (cnbc.com)
Apple has captured a record share of profits in the global smartphone industry in the third quarter, according to new research, despite grappling with falling iPhone sales. From a report on CNBC:Third-quarter smartphone operating profit reached $9 billion globally of which Apple took 91 percent of the share, Strategy Analytics said in a note on Tuesday. This amounts to $8.19 billion for the U.S. technology giant. Apple has the highest profit margins in the smartphone industry thanks to a loyal brand following and the ability to price its iPhones at a premium. And the figures come even after Apple reported three straight quarters of iPhone sales declines. Sat a long way behind Apple is China's Huawei which managed to grab 2.4 percent of global operating profit share in the smartphone market, accounting for $200 million, according to Strategy Analytics. Chinese start-up brands Vivo and OPPO are in third and fourth place, both capturing 2.2 percent of global smartphone profit each.
From the article: Apple's closest rival Samsung does not feature in the Strategy Analytics report.
If 2 companies are splitting the profits taken in a market 50/50 and one does a recall that wipes out their profit for a quarter, then the other company is making the same amount of money... but now has "100%" of the profit.
This news is just a reflection of Samsung taking a giant loss on the Note7.
"Canaccord Genuity analyst Michael Walkley said in a research report Sunday that Apple captured 75% of smartphone industry profits in the second quarter. But that's down from 84% in Q1 and 91% in Q2 2015, he said.
Apple's share of smartphone profits fell because of Samsung's improving profitability driven by streamlining its product lines along with strong demand for the Galaxy S7, Walkley said. Samsung's strong results are expected to continue in the third quarter ahead of the September launch of Apple's iPhone 7, he said."
"Samsung's share of smartphone industry profits improved to 31% in Q2, up from 22% in the first quarter and 19% in Q2 2015."
http://www.investors.com/news/...
Apple's profit share of the smartphone market was in steady decline, and Samsung and others were in ascension. The ONLY reason Apple is back up to 90%+ in Q3 is that Samsung's profit share evaporated in Q3 due to the recall expense. It's that simple.
"Sorry, yes."