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Apple and Samsung combined to pull in 100% of mobile profits in Q1

Published May 7th, 2013 6:00PM EDT
Apple, Samsung: Smartphone profit

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According to data from Canaccord Genuity, Apple and Samsung managed to capture 100% of the mobile industry’s profits last quarter. In the first quarter of 2013, Apple took home 57% of the global smartphone industry’s profits, while Samsung grabbed almost 43% to leave nothing for BlackBerry, Nokia or HTC. In fact, the only company that managed a mobile profit share above 0% was LG with its 1% share. Even at nearly 100%, however, Apple and Samsung’s share of mobile profit has actually declined from last year. The research firm previously reported that the two companies captured 103% of handset industry profits in 2012.

“Due to operating losses from smaller scale competitors trying to compete, Apple and Samsung’s combined share of industry profits have exceeded 100 percent in previous quarters,” Canaccord Genuity T. Michael Walkley said, according to AllThingsD. “While Apple and Samsung continue to dominate the share of industry profits, improving cost structures and results from other OEMs have reduced Apple and Samsung’s combined share to 100 percent from levels above 100 percent the past several quarters.”

Samsung has slowly eaten away at Apple’s profits over the past few quarter. The research firm notes that Samsung is now on track to surpass Apple for the largest share of smartphone industry profits within the next few months.

“During the June quarter, we believe softer iPhone sales combined with strong Samsung Galaxy S4 sales could result in Samsung surpassing Apple for the top share of handset industry profits,” Walkley said.

Although iPhone sales are expected to soften in the coming months, the launch of the iPhone 5S will likely jolt Apple back into the lead.

Dan joins the BGR team as the Android Editor, covering all things relating to Google’s premiere operating system. His work has appeared on Fox News, Fox Business and Yahoo News, among other publications. When he isn’t testing the latest devices or apps, he can be found enjoying the sights and sounds of New York City.