Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) are hoarding all smartphone profits in the industry again. Analysts recently announced that both Apple and Samsung are in the lead again in the handset industry for the first quarter of 2013. This means that other handset makers are not getting their fair share in the industry’s profits.
Despite the fact that this sounds bad for smaller competitors like Motorola Mobility Holdings Inc (NYSE:MMI), Sony Corporation (NYSE:SNE), and Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V), all this really means is that the two big companies are leading the market. Cannacord reported that Apple generated 57 percent of the handset of the industry’s profits within the first quarter. This leaves on 43% to Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930). In December, Apple Inc. (NASDAQ:AAPL) owned 72% of the profits. It’s predicted that Samsung will earn even more.
Not surprisingly, the Apple iPhone 5 was the leading smartphone during the early part of this year with AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), and Sprint Nextel Corporation (NYSE:S). The Galaxy S3 took the lead at T-Mobile from January to March. When the iPhone 5 became available in April, Apple took the lead in sales.
T. Michael Walkley(analyst) wrote in note to investors, “While Apple and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) continue to dominate the share of industry profits, improving cost structures and results from other OEMs have reduced Apple Inc. (NASDAQ:AAPL) and Samsung’s combined share to 100% from levels above 100% in the past several quarters.”
With Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) trailing, Apple Inc. (NASDAQ:AAPL) still is the leader in smartphones. And it’s highly unlikely that will change.
The remaining companies that broke even with a zero share of Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V), Sony Ericsson, HTC, and BlackBerry.
Apple Inc. (NASDAQ:AAPL) fans are now anticipating the next big smartphone, the iPhone 5S. Although there is no word on when we can expect the seventh generation Apple phone, there have been reports that it might come out during the summer. But it’s still more likely that the phone will arrive sometime in September or October, as Apple usually launches their phone before the holiday shopping season begins.
