Apple, Samsung Account for 100% of Smartphone Profits

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New data from researchers at Canaccord Genuity shows that Apple and Samsung accounted for all of the smartphone industry profits in the first quarter of 2013. All the other smartphone makers either posted losses or had profits too small to be seen on the pie chart.

All Things D’s John Paczkowski commented, “If you’re a smartphone manufacturer whose name isn’t Apple or Samsung, condolences on your March quarter. Because according to new research from Canaccord Genuity, it was a massive, will-crushing disappointment. In the first quarter of the year, Apple captured 57 percent of global smartphone industry profits. That left 43 percent for the taking. And Samsung, says Canaccord Genuity, took all of it — leaving nothing for BlackBerry, Nokia, or anyone else competing for the currently mythical title of ‘third smartphone platform.'”

CNET’s Don Reisinger explained, “Although that might sound like bad news for companies like Nokia, Motorola, and Sony, Cannacord pointed out that in the past, Apple and Samsung had actually combined to generate more than 100 percent of industry profits, due to losses at other handset makers. This time around, the figure is just 100 percent.”

InformationWeek’s Eric Zeman noted, “BlackBerry, HTC, Nokia and Sony together account for 0% of all the profits in the smartphone industry. LG can brag to these companies about its success, because it holds about 1% of the industry’s profits. Motorola, well, it is in the hole and has -1% of the smartphone industry’s profits due to its continued losses. Huawei, Kyocera, Pantech and ZTE’s collective profits don’t even hit the scale. It almost makes you wonder why these companies bother at all.”

Phil Goldstein with FierceWireless pointed out, “The dynamic between Apple and Samsung is changing. A year ago, Apple took home 74 percent of smartphone industry profits and Samsung took 23 percent. Samsung’s share nearly doubled year-over-year in the first quarter, and [Canaccord Genuity analyst Michael] Walkley said that the global launch of Samsung’s Galaxy S4 and slowing iPhone sales could push Samsung ahead in the second quarter.”