Even though Apple and Samsung pull in most of the profit from the mobile market, there are actually eight multinational companies that compete for the lead. According to Canaccord Genuity, per Forbes, Apple earns 69% of all operating profits among all leading device makers, while their main competitor, Samsung, controls around 34%. During 2012, Blackberry, LG, and HTC barely broke even, while Nokia, Motorola, and Sony operated at a loss.
Expected to gain more ground on Apple, Samsung’s is coming out with its Galaxy S IV smartphone. Apple plans on releasing a cheaper iPhone later this year. (From what I have read recently, Apple’s cheaper alternative is an iPhone Mini, which you can read more about on my January 10th post Samsung has surpassed Apple in smartphone sales.)
The market also warns that Apple and Samsung will not remain on top forever.
Research in Motion and Nokia, Now known as Blackberry, dominated the industry’s profits back in 2008. As consumer interest changes and technology evolves, different companies end up becoming competitors. Michael Walkley, a Canaccord analyst, believes that a company like Amazon, could be the snake in the grass in the mobile market. Another theory is that Google‘s renewed focused on high-end devices with Motorola could really pay off.
He wrote, “The wild card out there would be somebody new, like an Amazon who has been disruptive to other hardware makers by being willing to sell tablets to break even,” and “Google with Motorola may also be getting more serious about making proprietary devices.”
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