Apple and Samsung Are Getting All the Mobile Profits

Posted May 1, 2012 at 1:20am by iClarified | Please help us and submit a translation by clicking here | 6161 views

Apple and Samsung all getting all the profits from mobile, according to Raymond James analyst Tavis McCourt.

McCourt notes that last quarter Apple account for 80% of all mobile industry profits and Samsung got the remaining 20%. The companies together also captured 74% of the mobile industry's revenue, notes BGR.

"It is getting increasingly hard to understand where the rest of the device vendors will get the capital to fund necessary R&D and sales and marketing investments to continue to compete with Apple and Samsung," the analyst wrote in a recent note to investors.

"With essentially all of the other hardware vendors besides Apple and Samsung struggling to find profits to reinvest into R&D, Microsoft and Google have to be wondering who their hardware partners will ultimately be," McCourt continued. "Neither wants to be in a position where they have to take on more of the R&D burden, and neither want to have to initiate bidding wars to give Samsung an incentive to focus on its platform. Our assumption is that both Huaweii and ZTE will be courted heavily over the next few quarters by both Microsoft and Google as they look to strengthen their stable of sustainable hardware partners."

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Tareknaga - May 1, 2012 at 2:53pm
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