Canaccord Genuity estimated back in July that Apple was taking home 92% of the profits in the entire smartphone industry, and now says the figure climbed even higher last quarter, hitting 94%. Samsung was the only other company to make a profit, says the report, with 11% – the somewhat odd math explained by the fact that everyone else is losing money.
Investors Business Daily quotes analyst Michael Walkley predicting continued strong performance by Apple.
“Apple dominated the premium-tier global smartphone market during calendar Q3, with record share of industry profits,” Walkley said in the report. “We believe the iPhone 6 and 6S products should continue to post strong sales and high-end smartphone market share gains.
“With only 31% of the iPhone installed base having upgraded to the iPhone 6 and 6 Plus devices by Apple’s fiscal Q4 2015 (ended Sept. 26), we anticipate continued strong replacement sales through calendar 2016 and beyond.”
Tim Cook said last month that Apple was expecting big things from the holiday quarter.
We are heading into the holidays with our strongest product lineup yet, including iPhone 6s and iPhone 6s Plus, Apple Watch with an expanded lineup of cases and bands, the new iPad Pro and the all-new Apple TV.
The company reported record earnings in its fiscal 2015 year, which ended in September.
Photo: Ryan Emberley/Invision for Apple/AP Images.
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I call 103% bullshit¡
We get exactly the same discussion every time that new figures for smartphone industry profits are released.
When every manufacturer other than Apple and Samsung are making losses, you can report the figures in different ways. The entire industry makes a certain amount of profit each quarter, but some companies make a loss. You can either ignore those losses, which is misleading, or can subtract then from the profits of the other two companies to show how much money the industry is actually making, which appears to show a total greater than 100%.
You picked up that Apple and Samsung earn 103% of the industry profits, but forgot to consider that the loss making manufacturers account for -3% of the total profit, so the total correctly adds up to 100%.
Facts that you personally don’t like hearing = “bullshit”.
Apple isn’t taking enough smartphone profits. Apple needs to get at least 98% to 99% of smartphone profits otherwise it’s doomed. Apple investors go crazy when they hear Apple sells a million less iPhones in a quarter because it means Apple may have lost about .02% of profits and that’s simply too much for them to bear so they immediately dump their Apple stock. I think if Apple could take 20% of market share they might make that 98% profits. Still, Wall Street wants Apple to have at least 50% market share to be assured Apple’s iPhone business has a chance of survival. However, I don’t think that’s going to happen with companies selling $50 Android smartphones in India. Apple will likely lose market share percentage in that case. Even if Apple re-introduces a 4″ iPhone it will cost around $400 and Wall Street will say that it’s too expensive for Indian consumers to afford.
/s
If Apple earned 99% or more of the industry profits, the analysts would complain that it meant that there was no further growth available and therefore Apple would be doomed.
As for your point about Wall Street wondering whether India could afford iPhones, we don’t have to go very far back to remember when we were being told that the Chinese would never buy iPhones as they were too expensive. Those of us who have actually been to China and India have seen for ourselves that both countries have a large and aspirational middle income group who are very eager to buy things like iPhones and other luxury goods. China is a market that is becoming as big as the US market for Apple and India could become a very significant market very rapidly.