Apple And Samsung Consume Majority Of The Smartphone Market
August 8, 2012

Despite Legal Bouts, Apple And Samsung Top The Smartphone Market

Michael Harper for — Your Universe Online

Apple and Samsung may be currently engaged in lobbing law bombs towards one another, but outside the fray, other smartphone manufacturers are still looking for a way to compete against the two juggernauts.

On Monday, Canaccord Genuity analyst T. Michael Walkley posted a note wherein he made a seemingly impossible claim: Apple and Samsung captured 108% of smartphone profits in Q2.

Today, an NPD Group study further suggests Apple and Samsung´s supreme smartphone dominance, saying the two companies managed to collectively increase their sales by 43% in the last quarter over the same quarter in 2011. While Apple and Samsung were busy selling a metric crap ton of phones, other manufacturers, namely HTC, LG and Motorola, watched their profits fall by 16%.

“Apple generated a 71 percent share of estimated Q2/12 handset industry operating profits with only 6.4 percent global handset unit market share,” wrote T. Michael Walkley in his Monday note to investors.

“With its significant gains and increased margins during Q2/12, Samsung´s share of industry profits increased from roughly 26 percent in Q1/12 to 37 percent in Q2/12.”

Since then, Samsung produced a real hit with their Galaxy S III smartphone, allowing them to gain significant ground while many would-be Apple buyers anxiously await the next iPhone.

While the game mostly exists between these two companies, other operating systems are having trouble competing. Said Walkley, “Android continues to gain share from the struggling Symbian and BlackBerry ecosystems.”

“In fact, iOS and Android accounted for 82.7 percent of total smartphone OS shares in Q2/12, versus 79.9 percent in Q1/12 and 68.9 percent in the year-ago June quarter.”

According to today´s NPD study, Apple was also able to earn an additional 31% of the smartphone market in the last quarter, while Samsung walked away with 24%. The scraps were tossed to HTC, LG and Motorola, who left with 15%, 6% and 12%, respectively.

"By concentrating on their best, flagship devices, while at the same time supplementing their volumes with lower priced alternatives, both Apple and Samsung are extending their lead over the other smartphone makers," said NPD analyst Stephan Baker in a statement.

"To be a share leader means participating in all segments of the market, in order to take advantage of pre-paid and other growth opportunities, while also providing the hero devices that drive customers to your brand."

As these 2 companies become even more powerful by the day, rumors have emerged that Samsung might one day soon partner with one of their distressed competitors, namely the suffering RIM.

If analyst Peter Misek has it right, RIM has realized they should be licensing out their oft-delayed BB10 OS, and Samsung could be the company to license it to.

“Given recent management comments in the press, it now appears that RIM is realizing what Wall Street has been saying for some time: they are a subscale manufacturer and desperately need a partner,” said Misek.

“We believe RIM is attempting to revive discussions with Samsung regarding a BB10 licensing deal.”

As it stands now, it looks like Apple and Samsung will be the two huge heavyweights for the next 5 years or more.