Apple Inc. (NASDAQ:AAPL) remained the most profitable company in the smartphone market compared with its competitors in terms of profit value share, according to investment research firm, Cannacord Genuity.

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Apple (AAPL) Value shares down in second quarter

Based on the latest data released by Cannacord Genuity senior analyst, Michael Walkley, Apple Inc. (NASDAQ:AAPL) value share in smartphone profits during the second quarter was 53% down from 57% in the first quarter. Its value share is even significantly lower than its 69% value share in 2012.

For the June quarter, Apple Inc. (NASDAQ:AAPL) reported that it sold 31.2 million iPhones compared with 26 million units sold a year ago.

Despite the decline in Apple Inc. (NASDAQ:AAPL)’s share in smartphone profits, it is interesting to note that the iPhone maker remains more profitable than its strongest rival, Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) with 50% value share in the second quarter.

Samsung’s market share grow every year

It is also important to note that the South Korean electronics manufacturer’s value share in the smartphone market continues to grow every year. In 2011, its value share was 17% and the following year its share jump substantially to 34%. In the first quarter of 2013, its value share increased by 11% to 43%. The figures clearly shows that Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) is taking a bite out of Apple Inc. (NASDAQ:AAPL) as well as other competitors in the market.

During the second quarter, Walkley estimated that Samsung shipped approximately 72.5 million smartphones, up from 69.7 million units shipped in the previous quarter. Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930)’s IT Mobile Communications unit posted KRW 35.54 trillion sales.

Walkley’s research showed that the smartphone market is 100% dominated by Apple Inc. (NASDAQ:AAPL) and Samsung because the profit value share of other manufacturers in the industry have were, break-even, zero or negative.

Other companies negative in value shares

Data showed that the smartphone profit value shares of Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V), LG Electronics Inc. (KRX:066570) (KRX:066575), and Sony Ericsson recorded 0% profit value shares. BlackBerry Ltd (NASDAQ:BBRY) and Motorola Mobility Holdings Inc (NYSE:MMI) posted negative value shares.

In terms of smartphone operating system unit share, Cannacord Genuity revealed that the Android operating system of Google Inc (NASDAQ:GOOG) is the market leader with 74.6%. Apple Inc. (NASDAQ:AAPL)’s iOS operating system has only 13.5% market share while Microsoft Corporation (NASDAQ:MSFT)’s Windows Phone has 5.1% market share and the BlackBerry 10 operating system has 2.9% market share.

Walkley estimated that Android OS will gain another 2.5% in the next quarter to 77.1%. The iOS and the Windows Phone will decline by 2% and 0.3%, respectively to 11.5% and 4.8%.

According to Walkley, the major smartphone suppliers will profit from LTE smartphone sales growth in Western markets and global upgrades from feature phones to 3G smartphones. The analyst believe that the sales of smartphone globally is better than feared by investors. Walkley said, “In fact, we believed depressed valuations reflect an overly pessimistic view of the global smartphone market.”