Apple, Samsung Take 106% of Smartphone Profits

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With Motorola (Google), RIM and Nokia posting operating losses during the third quarter of 2012, Canaccord Genuity technology analyst Michael Walkley estimated that Apple‘s 59% of operating profits and Samsung’s 47%, combined to take 106% of all smartphone profits.  He said, “Given the current competitive dynamics, we believe Apple and Samsung will maintain dominant value share during Q4/12 with share gains for Apple versus Samsung expected in Q4/12.” 
Mr. Walkley estimated that in 2013, AAPL will sell 193.9 million smartphones, while Samsung will sell 303.6 million, combining for over 50% of market share. As a reference point, his next highest estimate of smartphone sales was with Huawei, at 47.9 million sales.
Mr. Walkley also estimated that in 2013, Apple will sell 101.6 million tablets. As a reference point, He anticipates that Samsung will sell 8.4 million tablets and Amazon will sell 10.7 million.
He said: ”With the impressive refresh of the 4th generation Retina iPad and launch of the iPad Mini earlier this week, we anticipate very strong holiday quarter iPad sales. In fact, with Apple’s decisions to price the iPad Mini at a $170 discount to similar 4th generation iPad SKUs and competitively priced versus lower priced competing products from Google and other Android OEMs, we anticipate strong sales of the iPad Mini, especially as gifts during the holiday quarter. Further, we believe the iPad Mini significantly expands Apple’s tablet addressable market internationally and should lead to strong sales throughout F2013 as international distribution increases.”

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