The mobile industry has been rapidly expanding over time. However, at the same time, many notable industry players such as RIM, LG and others have gone down and are not performing good at all. The vital question, then, is that where is all the profit from the expansion of handset market going? A report by Asymco not furnished the answer : to Apple and Samsung.
In fact, it can be said that it is Apple which is neatly pocketing most of the profit made by the overall mobile sales. Currently, Apple is getting 73 percent of the total profit earned by handset industry!! And that is while Apple doesn’t not have a significantly huge share of handsets in the overall handset market.
Samsung get 23% of the profits while HTC is able to squeeze out 1%. Nokia, RIM, LG, Motorola and numerous other vendors are persistently suffering losses huge handset sales. This is precisely because the most profit-making handsets are smartphones in today’s world, and right now, Apple and Samsung have near-absolute hegemony on the smartphone market.
The report also details that one of the major reasons why iPhone 4S is amassing such huge profits for Apple is that carriers who are carrying the smartphone and offering premiums over the device. This is because by securing the right to carry iPhone 4S, these carriers are making sure that they have what the customers currently consider nearly the best smartphone and so, in return for this edge over others, they are able to split their profits with Apple happily.
The industry of feature phones is also becoming increasingly by unpopular, unknown vendors, eroding the influence of current feature-phone giants such as Nokia. In the coming days, it will only become more difficult for the likes of Nokia, RIM, LG and HTC to sustain themselves if they are not successfully able to launch themselves into the smartphone market.