Apple grabs 77% profit in the mobile industry!

It has been a stunning quarter for Apple, it is absolutely crushing its rival. According to McCourt’s numbers, Apple gobbled up an astonishing 77% of all profits generated by the mobile industry in the second quarter of 2012 while also accounting for 43% of its total revenues, All Things D reports. ( Apple grabs 77% profit in the mobile industry!)

These numbers are particularly remarkable because Apple had relatively low iPhone sales of 26 million units last quarter while rival Samsung (005930) sold more than 50 million smartphones over the same period.

Samsung is outselling the iPhone 2-to-1 yet still can’t generate more cash than Apple from its products. Another way to look at it would be to say that Apple has a rock-solid business model, based around iTunes and its App Store, and Samsung does not, relying on Google for the vast majority of its content.

This is the reason why many big manufacturers – BlackBerry, Samsung, HTC, Nokia, and Microsoft – are all attempting to cultivate their own bespoke music and media services. That’s where the cash really is once you get consumers using your hardware.
Case in point: Apple is projected to make $13 billion from iTunes in 2013, according to Global Equities Research.

‘Ultimately, profits are the feedstock of innovation; and, innovation drives profits,’ said Raymond James analyst Tavis McCourt. He further added ‘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?’