Is the smartphone market impenetrable?

| March 31, 2014

Who earns most in the smartphone market and how is that affecting everyone?

Smartphone market

You probably know who earns most in the smartphone market (Apple and Samsung) but how does that affect everyone? It’s true that Apple and Samsung are the “big shots” in the smartphone market, in the past six years both companies have earned 88% of the total profit. Yes, that is a pretty huge figure! But how does this battle of the giants affect us? Simple, there will soon be no more new smartphone manufacturers.

Apple and Samsung’s domination in the smartphone market

As I said, in the past six years Apple and Samsung have dominated the smartphone market, creating a very fierce competition. Nowadays very few companies will venture in the smartphone market because they fear that people won’t buy their product because of the already made fan-base. Just think of Apple and Samsung like the two bullies that own the playground keeping new kids off from it. Get it now why no new company will ever dare to take them head on?

Of course you might think that Sony, HTC and the others have a shot at the title if they come out with something brilliant. Well, yes and no. There have been cases in the smartphone market when a device that wasn’t made by Apple or Samsung to be the most like handset of the year, but one little success won’t win you the battle, and of course one battle won’t win you a war. The remaining companies struggle to get a decent share of the profit. If you don’t believe me here are some numbers to help clarify this situation.

$215b: the total of profits earned in the smartphone market in the past six years.

Moto: -2.8%

Sony: 0% (a very small figure)

LG: 1.2%

HTC: 2.8%

RIM: 1.9%

Nokia: 9.5%

Samsung: 26.1%

Apple: 61.8%

Hope this made you understand why no new manufacturers will make their appearance soon in the smartphone market.

Category: Smartphone & Android Articles

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