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Apple and Samsung dominate smartphone business profits

The smartphone market is dominated by Apple and Samsung, according to a study issued by Canaccord Genuity which we received by email last night. The two companies combined account for a staggering 95 percent of the handset market profits during the fourth quarter.

Apple accounted for 80 percent of the profits alone during the same period.

Revenue is a good yardstick for success, but profitability is much more important and the report shows business model effectiveness. HTC for example had profitability issues and they had to restructure their product launches, their One line range for instance has been released with a new structure in place.

The report also highlights on those companies who are experiencing problems generating profit. Many of the Android phone makers for instance are struggling to attract the attention of the public. Nokia and Research In Motion are continuing to record market share losses this year.

This is in stark contrast to Apple, who are attracting a huge audience, thanks in part to the uniqueness of the iOS platform and the huge infrastructure of the Apple store, which offers customers hundreds of thousands of applications and games online for little cost. The report highlights that the Apple iPhone is outselling all other smartphones combined in the US market at Sprint Nextel and AT&T. Verizon Wireless show that the iPhone is selling as well as all Android smartphones combined.

Samsung’s Galaxy S range of phones is proving to sell well, especially the Galaxy S II which is a major success for the company.

Kitguru says: Have you bought a new iPhone or Galaxy S smartphone this year?

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