November 2011

Apple Claims 52 Percent of Global Handset Profits

Research from Canaccord Genuity analyst T. Michael Walkley reveals that despite Apple having just 4.2 percent of the global handset market, it the leads the pack in profits.  In the third quarter of 2011, from July to September, Apple is reporting 52 percent of all handset profits worldwide even though Samsung shipped the greatest number of phones. Samsung shipments rose 44 percent, while Apple's shipment declined 16 percent. Although shipment is a good sales indicator, it does not necessarily equal a larger profit. 

Samsung managed to claim a healthy 22 percent of the industry's overall profits. LG and Motorola followed with 20.6 percent of profits. HTC and Research in Motion each claimed another 10 percent of profits from handset makers. Nokia is struggling and reporting a loss in the third quarter. 

Apple's decline in sales is believed to be a result of the iPhone 4s anticipation. Rumors of an October release circulated for months. Many consumers eligible for an upgrade likely held off on upgrading with intent to purchase the latest Apple device. In October 2011, the iPhone 4s was released to carriers AT&T and Verizon.

The iPhone 4 and 4s both became available on the Sprint network for the first time. Sprint is projected to sell an estimated 1.5 million devices over the next quarter. Some expect Apple to capture 60 percent of industry profits over the December quarter.