SEOUL, KOREA – With Apple and Samsung Electronics taking up 95% of the total operating profit (up from 66% in the fourth quarter of 2011), industrial imbalances, to the chagrin of mobile carriers, have peaked. Despite an increase in the number of smartphone subscribers, mobile operators saw their earnings rate dip at the tail of discounted rates and subsidies.
According to the fourth-quarter market report issued by Hong Kong's Counterpoint Research, Apple nabbed 70% of the global smartphone profits, Samsung 25% and Nokia 2%. The remaining 3% was shared by about 300 companies.
On the other hand, global mobile carriers witnessed their profits go south.
In the fourth quarter of 2012 when the full-blown sale of the iPhone 5 kicked in, Verizon Wireless and AT&T, the two major US mobile carriers, saw their fourth-quarter net loss widen to USD 4.2 billion and USD 3.86 billion, respectively.
It is also true of Korean mobile carriers. KT and LG U+ posted a weak operating profit margin owing to various kinds of subsidies and rising marketing costs that came amid increased investment in 4G LTE services.
Peter Richardson, with Counterpoint Research, mentioned, “Mobile carriers in the US and other advanced markets are cutting their subsidies due to deteriorating revenue structures. China is the only market where subsidies are on the rise. Thus, the fate of mobile phone makers will hinge on their responses to the Chinese market this year.”
Sean Chung (hbpark@etnews.com)
**Article provided by etnews [Korea IT News]
[Reference] : http://english.etnews.com/electronics/2715655_1303.html
