Linked by Thom Holwerda on Fri 26th Jul 2013 14:56 UTC
PDAs, Cellphones, Wireless "In smartphones, it's not all about Apple and Samsung anymore. For several years, these two companies have dominated the mobile phone-making business, successively one-upping each other with ever sleeker, more technologically sophisticated iPhones and Galaxy handsets that left would-be rivals grasping. But now the competition is stirring, and consumers are giving another look to brands they once ignored." Not only is Samsung now more profitable in mobile than Apple (next goalpost please), smaller Android manufacturers, such as LG, ZTE, and Lenovo, are making huge inroads, and are raking in growing profits - in fact, these three now belong to the top 5 mobile device makers. The common parlance that only Samsung is making a profit off Android is simply no longer true.
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RE[6]: Profit or market share
by Nelson on Mon 29th Jul 2013 00:49 UTC in reply to "RE[5]: Profit or market share"
Nelson
Member since:
2005-11-29

Their profits don't become somehow worse just because someone else makes even more profits.


Let's dig further into this:

(Using Q1 2013 numbers, most recent I could find but will serve well for illustrative purposes)

It turns out that once you place numbers to the percentages it does matter. Samsung rakes in 95% of Android profits with $5.1 billion dollars in profit.

LG was second place with 100 million dollars in profit, leaving the remaining 100 million dollars for every other Android OEM to fight over

http://blogs.strategyanalytics.com/WSS/post/2013/05/15/Samsung-Capt...

Samsung's dominance is attributed to their complete and utter control of the supply chain and their sheer scale allowing them to crowd out every other OEM with marketing dollars. This is a huge freaking problem.

Which OEMs are you talking about? Not a Top 10 vendor for sure? Sony, Huawei and HTC are profitable


I'll ask you the same question I asked Thom: How much of that profit is derived from Android handset sales? Not much at all. I mean damn man, do a little research.

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