Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) are leading the mobile industry with 109% of the profits. According to T. Michael Walkley (an analyst from Canaccord Genuity), the iPhone maker took about 56% of the profits for smartphones and feature phones during 2013’s third quarter. Not surprisingly, Samsung took 53% of the industry profits.
Unfortunately, the other mobile companies have lost money, all except for Sony Corporation (NYSE:SNE) (TYO:6758) which broke even. BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) and Motorola had the lowest numbers with negative 4% and negative 3% respectively. HTC Corp (TPE:2498), Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V), and LG were all scored even with a negative 1% of mobile profits.
Apple and Samsung’s profits are likely to lower
Walkley added that Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930)’s profits are likely to lower when profits of Chinese vendors are included. Said Chinese vendors include ZTE, Huawei, Lenovo, and Coolpad. However, since profitability data from Chinese manufacturers is unavailable, the companies could not be included in the comparison.
Not surprisingly, the Cupertino-based tech giant saw an increase in profits from 53% in the second quarter to 56% in the third quarter, this was all during the transitioning of the iPhone 5S and iPhone 5C launch. Walkley wrote, “Given a full quarter of iPhone 5s/5c sales, we anticipate very strong operating profit share for Apple Inc. (NASDAQ:AAPL) during the holiday quarter. Further, we believe Apple’s value share of the handset market is even higher than our estimates… considering Apple’s dominant share of the tablet market, as some Android OEMs include tablet sales in reported smart device sales and profits.”
Interestingly enough, the smartphone leader earned more than all the other companies combined including Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) when it comes to tablets and other mobile devices. Both tech companies accounted for over 100% of the industry profits.
Apple and Samsung offer quality phones
The smartphone market is saturated with so many phones, many of which are forgettable. Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) are the only two companies that offer quality phones that a large chunk of consumers want. It doesn’t look like that current stance is going to change anytime soon.