Apple And Samsung Account For 99% Of Smartphone Profits As Other Companies Struggle

iPhone 4S Galaxy S3 Apple SamsungAccording to a new report by Asymco that contains operating profit data for the top eight smartphone companies from the first quarter of 2012, Apple and Samsung’s joint profit margin account for 99 percent of the profits generated by all eight companies. Of Apple and Samsung’s 99 percent grip on the mobile industry, Apple’s operating profit is said to make up 73 percent of that figure.

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However, Apple’s market share has slightly gone down from 75 percent to 73 percent this past quarter, while Samsung’s profits have made a substantial leap from 16 percent to 26 percent by effectively picking up the slack from the other seven companies.

With that said, HTC was the only company (out of the other six) that makes up the remaining one percent left behind by Apple and Samsung. The other five companies, consisting of Motorola, Research in Motion (RIM), LG, Sony Ericsson and Nokia, failed to generate a profit from their handset sales.

Furthermore, Apple and Samsung’s domination will continue to grow as more and more mobile phone owners make the switch to “smartphones” and the number of customers in the industry increases. For instance, in the past three years alone, profits generated from all eight major smartphone providers earned in a single quarter has more than doubled from $5.3 billion to upwards of $14.4 billion. Of course in that time span, Apple and Samsung have definitely established a foothold and can now account for 99 percent of the net profit generated from the eight major smartphone companies.

Stay tuned for more coverage on Apple, Samsung and the other competitors in the industry who are just trying to keep up.

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