And 77 percent of industry's operating profit
no secret that Apple overcharges for its shiny toys, but latest research by Raymond James Equity Research paints an even grimmer picture. Well, not for Apple of course.
The company took in 43 percent of the total industry revenue and as much as 77 percent of the industry’s operating profits in Q2 2012. To top it off, the company managed that by chipping in with a measly six percent share in shipments of smartphones and tablets.
Apple’s sue-buddy Samsung has apparently done very well in the same quarter and managed to ship 52 million smartphones. Unfortunately, even though this is almost double of what Apple moved in the meantime, Samsung didn’t make nearly as much per phone.
Analyst Travis McCourt stressed that “profits are the feedstock of innovation, and innovation drives profits”. He said that until Samsung starts beating Apple in profits, unit share will not be of particular concern.
He also pointed out that the likes of HP and Dell continue to sell more PCs than Apple does Macs, but it still doesn’t matter. Well, as long as they're not doing it for the money
, we say.