Apple, Samsung take 99% of all mobile phone profits


Not only is the Mobile Phone market quickly becoming a dual party system between Apple’s iOS and Google’s Android operating systems, it seems it’s also becoming a competition between just two vendors:  Apple and Samsung.

Horace Dediu, reporting for asymco, posted his findings on operating profits for the top eight mobile phone makers for the first quarter of 2012 and it’s a doozy.  Here is the profits breakdown:

Apple:  73% of all profits.
Samsung:  26%
HTC:  1%

The other five, including once-giants Nokia and RIM (BlackBerry), all lost money on their mobile phone divisions.

There has been some rumors of a revolt by the carriers (AT&T, Verizon, Sprint) against the gigantic subsidies that they pay to Apple upfront for it’s iPhone.  A subsidy is where the carrier pays the difference between the $199 you pay for your new iPhone (with 2-year contract) and it’s $599 retail price tag.  They do this in order to get the phone in your hand and hopefully, over the course of your contract, make back that money plus some from the amount you pay for your Data Plan.  Rumors say though that the big three carriers are looking for a more lucrative plan for themselves in light of Apple’s massive and record setting profit margins in recent years.

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