Apple Takes 104% of All Smartphone Profits Following Galaxy Note 7 Recall
Apple accounted for over 100 percent of smartphone industry profits in the third quarter of this year, according to estimates published by BMO Capital Markets on Thursday.
Analyst Tim Long, quoted in the Investor's Business Daily, said Apple's staggering 103.6 percent profit share in Q3 2016 came largely as a result of significant losses posted by rival vendors including LG and HTC, and despite Apple continuing to shift fewer handsets year on year.
Based on units alone, Samsung accounted for 21.7 percent of all smartphones sold, with Apple coming in second with a 13.2 percent share. In terms of profits however, Samsung came a distant second to Apple, capturing only a 0.9 percent share.
Samsung ceded market share in smartphone shipments to Apple and Chinese vendors in the third quarter because of its Galaxy Note 7 troubles, Long said. He expects further share loss by Samsung in the current quarter. Apple captured over 100% of smartphone industry profits for the first time, thanks in part to Samsung's weaker results, Long said.
If accurate, the estimates represent the first time Apple has achieved smartphone industry profits of over 100 percent - an impressive number for a company owning only around 12 percent of the market.
According to the same report, Apple managed 90 percent profit share in the same quarter a year ago. However, this year Apple's iPhone 7 numbers were undoubtedly helped by Samsung's hugely damaging Galaxy Note 7 recall and discontinuation, which effectively took the South Korean company out of this year's flagship smartphone race, indicating Apple's profit share is unlikely to be sustained in the long term.
Despite the impressive numbers, Apple's recent third quarter financial results reported its first full-year revenue decline for Apple since 2001, although Apple expects to return to revenue growth in the holiday season on the back of sales of the iPhone 7 and iPhone 7 Plus.
Popular Stories
iOS 26 was released last month, but the software train never stops, and iOS 26.1 beta testing is already underway. So far, iOS 26.1 makes both Apple Intelligence and Live Translation on compatible AirPods available in additional languages, and it includes some other minor changes across Apple Music, Calendar, Photos, and Safari.
More features and changes will follow in future versions,...
Apple is entering its most significant leadership transition in more than a decade as multiple senior executives prepare to depart and CEO Tim Cook begins to shape the company's next generation of leaders, according to Bloomberg's Mark Gurman.
In the latest edition of his "Power On" newsletter, Gurman explained that Jeff Williams, who was viewed as Cook's potential successor for several...
Nearly two weeks after the iPhone 17 series launched, analysts at investment banking firm Morgan Stanley said demand for the devices has been "modestly stronger than we originally expected," based on a combination of extended shipping estimates on Apple's online store and information it gathered from Apple's supply chain.
There has been strong early demand for the iPhone 17, iPhone 17 Pro,...
Apple's website offers a list of nearly 200 new features and changes (PDF file) included in the software update, released last month.
Apple also shared equivalent lists for iPadOS 26 and macOS Tahoe.
iOS 26 is compatible with the iPhone 11 and newer. To install the update, open the Settings app on your iPhone, tap on General, and tap on Software Update.
Below, we have highlighted eight ...
With the second beta of iOS 26.1, Apple updated the design of alarms set on the iPhone, making them harder to dismiss than before.
Stopping an alarm in iOS 26.1 beta 2 requires a new Slide to Stop gesture rather than a simple tap. You can continue to tap to snooze an alarm, but if you want to turn it off entirely, you need to use a swipe.
Transitioning from a tap to a slide gesture to...
The MacBook Air is Apple's most popular laptop – a thin, fanless machine that wields quiet power thanks to the efficiency of Apple silicon. While the M4 model isn't exactly old, attention is already turning to its successor.
Apple doesn't telegraph new product launches ahead of time, but we can draw a surprisingly clear picture of what to expect by looking at Apple's silicon roadmap,...
A new iPad mini is "absolutely" on the way, according to Bloomberg's Mark Gurman. So what should we expect from the successor to the iPad mini 7 that Apple released a year ago?
Processor and Performance
Apple is working on a next-generation version of the iPad mini (codename J510/J511) that features the A19 Pro chip, according to information found in code that Apple mistakenly shared in...
After launching new iPhones last month, Apple is promoting iCloud+ with a prominent banner on its home page, in a bid to boost its services revenue. In addition to more storage, all iCloud+ plans include five perks for iPhone users.
As a refresher, iCloud includes 5GB of storage for free. If you want extra storage, you need to subscribe to an iCloud+ plan. In the United States, prices range...
