Samsung shipped about 50 million smartphones last quarter — about double the number Apple sold and, according to IDC, the largest number of units ever shipped by a handset vendor in a single quarter. However, if Raymond James data is any indicator, Samsung’s 2:1 lead over Apple is a statistic in vain. Apple — thanks to the higher gross margins of the iPhone and iPad — far outshines its rivals in both revenue and operating profits.
Having generated only about 6 percent of the industry’s smartphones and tablets in the second quarter, Apple captured about 43 percent of the industry’s revenue and an astonishing 77 percent of the industry’s operating profits. Thats about 2.65 times that of Samsung’s. Interestingly enough, Apple and Samsung account for 96% of the global Mobile computings EBITs. Now you know why the rest of them are such a deep shade of Red! Apple’s statistic is of note especially in the light of the fact that Q2 in generally Apple’s weakest quarter and Samsung had the Galaxy SIII launch in Q2.
Ultimately, profits are the feedstock of innovation; and, innovation drives profit. Until Samsung starts generating more profits than Apple, we would not be overly concerned with who has the unit share lead. Remember, HP and Dell still sell a lot more PCs than Apple sells Macs, but does it matter. Probably not to Apple.
The growing popularity of tablets is encouraging not just print publishing and television service providers to go mobile, but advertisers as well.Tablets, thanks to their larger screens and more engaging media experience, will account for 53% of mobile advertising dollars in 2014, compared to 47% for mobile handsets. That number is expected to grow to 60% by 2016.
A quarter of tablet owners clicked on ads while using apps, and 29% purchased extra content. Additionally, on average, tablet owners buy 1.7 paid apps per month, while smartphone users buy 1.1.
A recent study by the Yankee group provides the directions towards tablets propelling and growing the future of Mobile advertisements and media.
• Tablets are leading content owners, service providers and advertisers to go mobile. Tablet usage extends beyond games into print publishing and rich media. A fifth of tablet app downloads are for shopping and banking—an indication of the device’s potential for mobile commerce.
• Over two-thirds of tablet owners are frequent video watchers. Pay TV services, producers and advertisers are rising to the challenge with optimized apps and dual-screen functionality. Video viewing is set to increase as mainstream adopters—who are even more video-oriented—buy into tablets.
• Tablet ad revenues will surpass handsets by 2014. Mobile advertising works on tablets. In-app ads are especially effective and generate responses from a quarter of their target audience.
• Over a third of tablet owners purchase multimedia from application stores. Apple’s App Store is a key strategic advantage and remains a killer incentive for developers to prioritize iOS. No surprise, then, that Google turned the spotlight on Google Play in the Nexus 7 tablet launch. The application store forms a decisive battleground for ecosystem rivals.