Analyst: Apple Grabs Massive 86% Share of Handset Industry Profits

While Android fans are quick to point out Apple lagging smartphone market share in terms of volume shipped, Apple CEO Tim Cook is laughing all the way to the bank with a humongous 86 percent of the profit share in the handset induct according to one analyst.

In a research note to investors, Analyst Michael Walkley of Canaccord Genuity posits that the Cupertino-based tech giant is walking away with an estimated 86 percent share of industry’s total profits, which is simply “remarkable.”

Key points from the report (via AppleInsider) are as follows:

  • Apple’s gains came at the cost of competitors, most notably Samsung, which was estimated to have accounted for just 18 percent of the industry’s profits. That’s the lowest total for Samsung since 2011.
  • The only other company to have a positive value share in profit last September quarter was LG with 2 percent.
  • HTC and BlackBerry are estimated to have accounted for 0 percent share in the quarter, essentially breaking even.
  • Motorola with an estimated mobile operating loss of $185 million is said to have accounted for -2 percent, while Microsoft’s $341 million estimated lost in handsets gave it -4 percent of the industry’s profit value share.
  • Chinese smartphone makers are not included in his estimates, due to a lack of available data on sales and profits.

Canaccord Genuity has maintained its $120 price target and “buy” rating for AAPL stock.


Posted by | Posted at November 4, 2014 19:14 |
Storm is a technology enthusiast, who resides in the UK. He enjoys reading and writing about technology.

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