Interesting tweet from analyst Horace Dediu, “Apple’s share of operating profits from global mobile phones dropped to 60% in Q3. Samsung now at 39%. HTC 1%. No other companies profitable.”A couple of thoughts on this:
- How is this sustainable for all the other phone makers? What happens to Motorola, RIM, Nokia, LG, et al? Do they go away?
- If they go under, what happens to Android? If you’re wondering why Google is trying to save Motorola, this could be a clue. It doesn’t want to be held hostage by Samsung, the only smartphone maker that’s profitable.
- What happens to Windows Phone? If Nokia continues to lose money and market share, and HTC is just barely profitable, what happens to Microsoft’s mobile efforts?
- Is this really a business Microsoft wants to enter? Microsoft is reportedly thinking about doing its own smartphone. Does it really think it can make money like Apple and Samsung; companies with years of manufacturing expertise?
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