Canaccord Genuity on Wireless Equipment; Q1 Checks Indicate Apple/Samsung Dominated Again

May 2, 2012 11:18 AM EDT
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Canaccord Genuity on Wireless Equipment; Checks Indicate Apple/Samsung Dominated Again

Analyst, T. Michael Walkley, said, "Our monthly handset channel checks and recent earnings reports from the leading global handset/smartphone OEMs indicated seasonally soft Q1/12 global handset sales with weak feature phone sales somewhat offset by a growing mix of iPhone and Samsung Android smartphone sales. While Apple (Nasdaq: AAPL) maintained 23% smartphone market share consistent with its record December quarter results, Samsung reclaimed top smartphone market share during Q1/12 through its breadth of products across multiple price tiers. In fact, Samsung gained a remarkable 650bps of smartphone market share to 29.1% share of smartphone sales during Q1/12, representing an astounding 1670bps of smartphone share growth Y/Y."

"With strong iPhone market share during Q1/12 combined with Samsung’s strong smartphone share gains including increased sales of higher margin products such as Galaxy Note, we estimate Apple and Samsung captured a remarkable 99% of Q1/12 handset industry profits. In fact, as seen in Figure 4 of our report, Apple generated 73% share of estimated Q1/12 handset industry operating profits with only 9.0% global handset market share. With its significant share gains and increased margins, Samsung’s share of industry profits increased from roughly 15% in Q4/11 to 26% in Q1/12. With RIM (Nasdaq: RIMM), Nokia (NYSE: NOK), HTC, and Sony (NYSE: SNE) all in the midst of product transitions and Motorola Mobility (NYSE: MMI) merging with Google (Nasdaq: GOOG), we believe Apple and Samsung will maintain their dominant positions throughout 2012."

"April checks: Apple/Samsung remain strong, but Nokia Lumia 900 and HTC One
off to solid starts"

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