Smartphone makers Apple and Samsung are expected to continue their lead in the smartphone race, and could pull further ahead of the pack.
While Apple and Samsung together have about half the market share in phone sales (as of Q4), they won 91 percent of the operating profits in the category, leaving Nokia, BlackBerry parent Research in Motion and HTC on a downslide, said The Wall Street Journal.
The two continue to gain share. In Q4, Apple’s share hit 23.5 percent, up from 16 percent a year earlier. Samsung’s share soared to almost 23 percent from less than 10 percent.
Conversely, Nokia sales fell 23 percent last year and its stock price has lost almost 90 percent of its value since the iPhone launched in 2007.
And that’s just in smartphones. Looking at all consumer electronics products in the U.S., including computers, Apple won 19 percent of all the spending in CE over the recent holiday season, as per the NPD Group. (It tripled its share in just 2 years).
Apple is having an impact on Best Buy as well. Best Buy stores sell less than $1,000 in goods per square foot per year, while Apple sells more than 6 times that amount, according to RetailSales. If Apple produces a TV as rumored, the impact on Best Buy could be greater.
Apple is expected to post Tuesday evening, a profit of $9.2 billion for Q1 through March, about the same profit expected from the world’s reigning oil company, Exxon Mobil.