Apple Keeps Smartphone Profit Crown

Iphone 5

Apple (NASDAQ:AAPL) continued to account for the majority of the smartphone market’s profits in the second quarter of 2013, according to a new report from Canaccord Genuity research analyst T. Michael Walkley and reported by Apple Insider. According to his data, Apple secured approximately 53 percent of total profits in the global smartphone market.

Although Apple still took the lion’s share of profits, rival smartphone maker Samsung (SSNLF.PK) was not far behind, taking 50 percent of total smartphone profits. As usual, both companies accounted for more than 100 percent of total smartphone profits because most other companies actually sustained operating losses or broke even during the quarter.

According to Walkley, Apple took 69 percent of profits in 2012, while Samsung took 34. However, Samsung has been slowly increasing its share of the profits since the first quarter of this year. Apple’s March quarter share dropped to 57 percent, while Samsung’s share in the same quarter increased to 43 percent.

Apple’s declining profits are likely due to the increasing saturation of the premium smartphone market. As the high-end smartphone market slows, most of the growth is shifting to the low-end smartphone market.

Walkley’s data starkly contrast with market research firm Strategy Analytics’s recent claim that Samsung had become the most profitable handset vendor in the second quarter of 2013. Apple Insider’s Daniel Eran Dilger noted that Strategy Analytics unfairly compared Apple’s estimated iPhone profits to almost all of Samsung’s profits from its IT and Mobile Communications category of products.

Follow Nathanael on Twitter @ArnoldEtan_WSCS

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