Roughly 1,000 companies make smartphones. Just one reaps nearly
all the profits.
Apple Inc. recorded 92% of the total operating income from the
world’s eight top smartphone makers in the first quarter, up from
65% a year earlier, estimates Canaccord Genuity managing director
Mike Walkley. Samsung Electronics Co. took 15%, Canaccord says.
Apple and Samsung account for more than 100% of industry profits
because other makers broke even or lost money, in Canaccord’s
Apple’s share of profits is remarkable given that it sells less
than 20% of smartphones, in terms of unit sales.
At just 20 percent of unit sales, Apple isn’t even close to a monopoly. At 92 percent profit share, they have a market dominance that rivals any actual monopoly the tech industry has ever seen. We don’t even have a term for this situation, it’s so unusual. Profit monopoly?