Thanks a lot Samsung, we'll have those profits: Seems to be what Apple executives are saying after data released on Friday showed that Apple took virtually all of the smartphone industry's profits in Q3.
With no little help from exploding Samsung phones, some analysts claim the Cupertino-based tech giant actually took in 104% of the profits (that's because LG and HTC made losses)
BMO Capital Markets analyst Tim Long, said Samsung eked out just 0.9% of the total profit, despite commanding the largest 21.7% market share of all phone makers. Apple is second with 13.2%, while Huawei is the third-largest manufacturer now with 9.7% out of the 346 million smartphones shipped in Q3.
Last year, Apple netted 90% of the total profits in the third quarter.
"Few Android vendors make profits," Strategy Analytics Director Woody Oh told Forbes. And while Android clearly dominates the market in numbers, it faces other challenges, including "overcrowding" by a range of new, low-cost manufacturers.
Plus, he says, "Google's new Pixel range is attacking its own hardware partners that made Android popular in the first place."
According to Forbes, globally, smartphone shipments grew by 6% annually, to 345 million units in the third quarter. That was its fastest growth rate for a year. But most of that growth is coming from emerging markets in Asia, Africa and the Middle East, and in particular, India and South Africa.
Earlier this month, LG revealed that its smartphone division had lost $390 million in the quarter between July and September 2016; the sixth straight quarter of declining profits at the unit. HTC also recently revealed a $63 million loss for the third quarter.
The achievement comes at the same as Apple is criticised by investors for struggling to grow; iPhone sales growth is slowing dramatically and the company broke its 13 year streak of record quarterly earnings earlier this year.
Apple expects to return to revenue growth in the holiday quarter — largely driven by sales of the new iPhone 7 and iPhone 7 Plus.