Saturday, 12 May 2012

Apple and Samsung Share the Income Almost from All of the Mobile Market

| Saturday, May 12, 2012 | |


The market of mobile devices is growing even more rapidly than one could imagine. Actually there are a lot of mobile devices producers and distributors, but the practice shows that each market sooner or later reaches the stage when there are just several major market-“gamers”. An interesting study of the mobile market, dedicated to the distribution of income among the major players, was conducted in the market research firm - an Asymco.

The study in words and numbers

Describing the current situation in the sales of mobile devices in the world, a company's analyst Deidu Horace claims that the HTC, Nokia and RIM companies, does not meet the expectations of its investors. This affects the capitalization of the vendors: RIM's and Nokia's shares are sold literally on the verge of its nominal value, and the value of HTC paper fell by 70% of its emission value.
In addition, if you recall that the former SonyEricsson and Motorola are not getting any profit for years, and mobile unit of the South Korean LG has been on the verge of profitability since 2009, it turns out that the mobile world market is in a decay.
However, Deidu notices, that the situation is just opposite - statistics shows that during the first quarter of 2012 deliveries of smart-phones have increased up to 7%, while sales of some certain companies has grown by 20%. In other words - who takes the main income?
According to public reports of the companies, which are publishing the results of its work in the mobile market, it turns out that Apple has received 73% of operating profit for the three months, Samsung - 26% (operating profit is the difference between gross profit and operating costs). On such a background, HTC with 1% looks much better than Nokia and RIM, but certainly not comparable with the results of the U.S. and South Korean manufacturer.

What are the reasons of this phenomenon?

Deidu argues that, according to statistics, the majority of consumers need and want to have a mobile devices not as a "device-to-call» (phones-as-voice-products), but as a full-fledged computing device (phones-as-computing- products), allowing you to enjoy the entire "digital comfort" in any place and at any time. At the same time LG, Sony, Motorola and Nokia could not completely abandon the simple phones with improved functionality due to the modern techniques of mobile applications development  and move further to the high and expensive devises, which are generating more profits.
The article was provided by Andrew Smith, BugHuntress QA Lab.
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