Since the fundamental reason a business exists is to make profits (and the more the better), one might ask the question – Why do Samsung, HTC, Microsoft, LG, Blackberry etc even bother to sell smartphones.
A new research report put out by Michael Walkley of research group Canaccord Genuity estimates that Apple took 86% of the profits made by the major handset vendors in the third quarter (July-September) of 2014.
Although Chinese smartphone vendors (peddling Android devices) have been in the news lately because of their low cost and fast processors, Walkley did not include them in his report for want of financial data.
Besides Apple, Samsung and LG were the only prominent handset vendors in positive territory in the third quarter.
“We believe Apple is experiencing a record iPhone 6 upgrade cycle due to very strong replacement sales as well as from high-tier smartphone market share gains from Android,” Walkley wrote in the research note. “We believe these trends should result in very strong (fourth quarter of calendar 2014) smartphone sales and share gains for Apple.”
Samsung – Bad Shape
In contrast to Apple’s go-go quarters, Samsung Electronics is struggling in recent quarters.