Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
Search
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Mobile

    Apple Takes in Lion’s Share of Global Smartphone Market Profits

    By
    Todd R. Weiss
    -
    July 13, 2015
    Share
    Facebook
    Twitter
    Linkedin

      Apple’s iPhones helped the company bring in 92 percent of the first-quarter profits of the eight largest vendors in the global smartphone marketplace, leaving the remaining 8 percent to all its competitors combined.

      Making that even more incredible is that Apple sells only about 20 percent of the smartphones on the market while its roughly 1,000 competitors sell the other 80 percent, according to research conducted by financial services firm Canaccord Genuity and published July 12 in The Wall Street Journal.

      The latest estimates from Canaccord Genuity Managing Director Mike Walkley showed Samsung bringing in about 15 percent of the global smartphone profit for the quarter, The Journal reported, with the two companies “accounting for more than 100 percent of industry profits because other makers broke even or lost money.”

      One year ago, Apple brought in 65 percent of the smartphone segment’s profits, according to Canaccord Genuity.

      None of this is great news for Samsung and other competitors. Samsung recently reported estimated second-quarter 2015 figures that show expected drops in revenue and profit as the huge technology company continues to be plagued by disappointing financial results. In estimates released July 6, Samsung said it expects to report operating profits of $6.1 billion for the quarter ended June 30, which is a 4 percent drop from the same period a year ago, as well as revenue of $42.3 billion, 8.4 percent lower than the total one year ago.

      The numbers are particularly disappointing at this time because in April Samsung released its new flagship smartphones, the Galaxy S6 and Galaxy S6 Edge, to battle back against Apple’s hugely popular iPhone 6 and iPhone 6 Plus models (pictured), which came out in September 2014.

      Samsung will release its final figures for the second quarter in late July. The estimates show the company heading for its seventh straight quarterly profit decline.

      Samsung has been hit hard in recent years by lower sales of its mobile phones, which have been losing ground to cheaper phones from Chinese handset makers, and from stiffer competition from Apple’s latest iPhone 6 smartphones and from other competitors. Much of the sales slump likely was due to consumers who were waiting to see the then-new iPhones and Samsung’s own replacement for its earlier flagship Galaxy S5 phone.

      The company had been hoping for a big financial turnaround after the release of the new Galaxy S6 and S6 Edge, which went on sale April 10 after almost two months of intense build-up in the marketplace, but the company misjudged the popularity of the S6 Edge devices and didn’t produce enough of them, which stalled sales.

      In late April, Samsung reported a $4.63 billion net profit for the first quarter of 2015, which was down 39 percent from the same quarter one year prior, when the company had a $7.04 billion net profit. For the South Korean smartphone and electronics maker, it continues to be a disappointing trend downward.

      Samsung’s first-quarter revenue of $43.8 billion was down from $49.9 billion for the same quarter one year prior. Operating profit for the first quarter dropped about 30 percent to $5.64 billion from $7.8 billion in the same quarter one year prior.

      Samsung, looking for an edge to light a fire under its lagging smartphone sales figures, is now planning to unveil its next Galaxy Note phablet in mid-August, at least several weeks earlier than its typical autumn release announcements, in an effort to beat Apple in the constant race for new buyers, according to a recent eWEEK report.

      Microsoft’s Lumia line has been having its own problems, as well. Microsoft bought the smartphone line from Nokia for $7.1 billion in April 2014, and then rebranded it in October 2014. The Lumia line of Windows-based phones, despite being generally well-received, has barely made a dent in unseating Android- and iOS-based smartphones from the top of the smartphone market.

      Microsoft announced on July 8 that it is laying off 7,800 employees, mostly from its mobile phone business, after laying off some 18,000 workers last year. It will take a $7.6 billion impairment charge for the layoffs and a restructuring charge of up to $850 million related to the acquisition of Nokia’s Devices and Services businesses.

      In January, Apple reported its best-ever financial quarter, posting $74.6 billion in revenue and $18 billion in net profits for the first fiscal quarter of 2015 due to a consumer frenzy of sales of its latest iPhone 6 and iPhone 6 Plus smartphones, Mac computers and sales of apps and more in the company’s App Store.

      Todd R. Weiss
      As a technology journalist covering enterprise IT for more than 15 years, I joined eWEEK.com in September 2014 as the site's senior writer covering all things mobile. I write about smartphones, tablets, laptops, assorted mobile gadgets and services,mobile carriers and much more. I formerly was a staff writer for Computerworld.com from 2000 to 2008 and previously wrote for daily newspapers in eastern Pennsylvania. I'm an avid traveler, motorcyclist, technology lover, cook, reader, tinkerer and mechanic. I drove a yellow taxicab in college and collect toy taxis and taxi business cards from around the world.

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      Zeus Kerravala - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      Wayne Rash - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×