Monday, March 25, 2013
Apple's Growing Dependence on iPhones
In 2012, Samsung (SSNLF) and Apple (APPL-$463.58) remained the dominant OEMs in the smartphone market, with the two companies accounting for 29% and 20%, respectively, of global shipments, up from 20% and 19% in 2011, according to IHS iSupply.
Looking ahead, some analysts have expressed concerns that Samsung, the world’s largest maker of mobile phones, televisions and computer memory chips, could become too dependent on mobile sales. In 2012, handsets and tablets accounted for 66.9% of the $26.7 billion in operating profitability, up from 51.9% (of $14.39 billion) in 2011.
“The high-end smartphone market has largely become saturated, while the fast Chinese growth in the lower segment will make it difficult for anyone to see strong profit growth there,” noted Kim Hyung Sik, a Seoul-based analyst with Taurus Investment Securities.
Like Samsung, Apple is becoming increasingly dependent on its mobile segment to drive top-line sales. In the first fiscal quarter of 2013 (ended December 29, 2012), net sales of iPhones and iPads totaled $30.7 billion and $10.7 billion, respectively, and accounted for 56% and 20% of aggregate sales (up from 52% and 19% in the prior year).
Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.