Apple Surpassed This Rival in Mobile Processor Revenues
Although Samsung (SSNLF.PK) manufactures many of the chips used in Apple’s (NASDAQ:AAPL) devices, it appears that the Cupertino-based company makes more money from those chips than its Korea-based supplier does. According to a new report from market research firm Strategy Analytics via Apple Insider, the popularity of Apple’s mobile devices have qualified the company as one of the biggest tablet and smartphone processor makers in the world by revenue.
Although Apple does not actually have its own chip fabrication plant, Strategy Analytics used the “market-level average selling prices” of processors and Apple’s mobile unit sales numbers to calculate the amount of revenue that the company made from its mobile device processors, reports Apple Insider. According to this classification method, Apple is the second largest smartphone processor maker by revenue, with a 15 percent share of the total market revenues of $4.4 billion.
Qualcomm (NASDAQ:QCOM) is the only smartphone processor maker that outranks Apple in revenue share. According to Strategy Analytics’ data, Qualcomm took 53 percent of the total smartphone processor market revenues in the second quarter of 2013. Apple supplier Samsung did not earn a spot in the top-three rankings.
However, Apple secured the majority of the tablet processor revenues in the second quarter of 2013 with a 34 percent share of the total market revenues of $759 million. Samsung and MediaTek tied for second place with each chip-maker taking a 10 percent share. This time, Qualcomm was left out of the winners’ circle.
Apple was able to secure such a large share of the mobile device processor revenues thanks to its profitable iPhone and iPad products. According to market intelligence firm ABI Research, Apple secured $6.3 billion of the $12.7 billion-total tablet market revenues in the second quarter of 2013, even though sales of Android-based tablets topped sales of Apple’s iPads for the first time. Similarly, a Canaccord Genuity research report via Apple Insider noted that the iPhone maker secured approximately 53 percent of the total profits in the global smartphone market during the second quarter of 2013.
Here’s how Apple closed out the trading week on Friday.
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