It’s no secret that Samsung and Apple (NASDAQ:AAPL) are the two most prominent players in the worldwide mobile phone market today. However, Tim Worstall at Forbes has pulled together some interesting statistics that clearly illustrate the differences between the two companies and perhaps proves why Apple remains the dominant mobile phone maker.
Using statistics gleaned from John Gruber’s Daring Fireball technology blog, Worstall points out that Apple, despite its undeniable success, has “never had even a majority of the smartphone market: let alone of the total mobile phone market. And it’s never had the market leading share in terms of OS either.”
As reported by Forbes, Daring Fireball states that, “Samsung has had a remarkable run over the last few years. They make more money — profit, not merely revenue — from selling mobile phones than Google (NASDAQ:GOOG) makes for all of its businesses combined.”
However, despite Samsung’s overwhelming tidal wave of profit through market saturation, Apple is still dominating in terms of profit share. According to analyst T. Michael Walkley, via Daring Fireball, “last year Apple took 69 percent of the handset industry’s profits; Samsung took 34. For just the last quarter, the numbers were 72 percent for Apple, 29 for Samsung.”
The careful observer will note that Apple and Samsung’s shares total more than 100 percent — in fact, they generated a combined 101 percent of industry profits in the fourth quarter, and a total of 103 percent for all of 2012. That’s the result of factoring in full-year operating losses from BlackBerry (NASDAQ:BBRY), Nokia (NYSE:NOK), and Motorola Mobility (NASDAQ:GOOG).
So, Samsung is a Goliath of the handset industry by almost all measures except the one that matters the most: profit share.
And as Wortstall keenly points out, that is the only real measure of victory in capitalism.