While there is a lot of talk about how Apple’s momentum is slowing down, there seems to be one area where it is way ahead of the competition and that is profits. In fact, one analyst thinks Apple has more than 100 per cent of smartphone industry profits in Q3.
As per BMO Capital Markets analyst Tim Long, Apple accounted for 103.6 per cent of all smartphone industry operating profits in Q3. The number is above cent per cent because other vendors are losing money. Thus Apple ends up with “more smartphone profit than the industry netted overall”. For the year-earlier period, Apple grabbed 90 per cent of smartphone profits, Long said, highlighting how others had fallen of the cliff when it came to profits.
In fact, the number 2 in profits is Korean tech giant Samsung with a mere 0.9 per cent share. Long said everyone from LG to HTC had lost money in the quarter. The analyst was of the opinion that Samsung, which had lost some market share because of the Note 7 fiasco, will end up ceding more ground to Apple in the near future.
However, according to BMO estimates, Samsung still had 21.7 per cent of the smartphone market based on units sold in Q3, followed by Apple (13.2 per cent) and Huawei (9.7 per cent). Apple launched the iPhone 7, iPhone 7 Plus in September this year at a crucial time for the company when its overall revenue has fallen thanks to slowing iPhone sales, which has become the star product in its portfolio. However, most analysts expect the iPhone 8 to come with major design changes and spark better upgrade than the 7 series.