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Apple, Samsung Only Smartphone Makers Earning a Profit

Photo Credit: Samsung Galaxy S5 vs iPhone 5S by Kārlis Dambrāns Licensed under CC BY-NC 2.0

Apple and Samsung are the only Smartphone makers who know how to turn a profit from their handset divisions.

The iPhone 6S
The iPhone 6S

According to research firm Canaccord Genuity, the two popular Smartphone makers are the only companies who do not struggle to at least break even on their Smartphone sales.

Canaccord Genuity analyst Mike Walker, in a recent note to investors, is the undisputed leader of the pack with a healthy 38 percent operating margin on its iPhone sales.

Samsung had a 17 percent operating margin on the sale of its Android-run Smartphones.

Microsoft, BlackBerry, HTC and other Smartphone makers, however, are constantly looking for ways to slash expenses as they struggle to make headway against Apple’s iPhones and Samsung’s Galaxy line.

Microsoft’s had a miserable operating margin of -22 percent in its second quarter while BlackBerry, is losing roughly three percent on the sale of its handsets. HTC, meanwhile, recorded a -22 percent operating loss on its Smartphone sales.

According to the Canaccord report, Apple nabbed a full three-quarters of all the Smartphone market’s profits in 2016’s second quarter. Samsung took the remaining quarter, effectively leaving all other companies in the cold: they either broke even or were in the red.

(Via Fortune)

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