Analyst: Apple Took 87 Percent of Phone Handset Profits Last Quarter

Patrick Seitz, reporting for

Apple and Samsung continue to soak up all the industry’s profits, McCourt says. Apple claimed 87.4% of phone earnings before interest and taxes in the fourth quarter, he said. Samsung took in 32.2% of industry profits. Because their combined earnings were higher than the industry’s total earnings as a result of many vendors losing money in Q4, Apple and Samsung mathematically accounted for more than 100% of the industry’s earnings.

That’s not even close to 100 percent. The rest of the industry is bleeding money. Makes me wonder what Apple’s share of tablet profits is. They’re like a profit monopolist — which, to my knowledge, is not actually a monopoly in any legal sense. Antitrust laws are set up for a world where market share and profit share are strongly correlated, which is not the case with Apple.

(Via Matt Yglesias.)

Wednesday, 12 February 2014

Ads via The Deck Ads via The Deck