Like the ruthless character of Negan on "The Walking Dead," Apple has seized everything worthwhile from rivals in the smartphone industry.
Canaccord Genuity analyst Michael Walkley on Monday estimated that Apple took 106% of smartphone industry profits in the third quarter. Its share is more than 100% because other vendors lost money in the business, resulting in Apple having more smartphone profit than the industry netted overall.
Apple's smartphone operating profit totaled $10.84 billion in Q3, vs. the industry total of $10.28 billion, Walkley said. Smartphone vendors that lost money in Q3 included Microsoft (MSFT), BlackBerry (BBRY), Lenovo, LG and HTC, he said. His report excludes a large portion of Chinese smartphone makers that do not provide profit information.
Earlier this month, BMO Capital Markets estimated that Apple grabbed 104% of smartphone industry profits in Q3.
IBD'S TAKE: Apple stock on Monday retook a previous buy point of 110.33. For more information, read the article "Apple Is A Buy; Veeva, HPE, Urban Outfitters Near Breakouts With Earnings Due: Action Plan."
Apple benefited from the launch of its iPhone 7 and missteps by chief rival Samsung, Walkley said. In Q2, Apple accounted for 75% of smartphone industry profit, he said.
Samsung accounted for 1% of smartphone industry operating profit in Q3, or $87 million. The South Korean electronics firm was stung by a costly recall of its Galaxy Note 7 smartphone. Samsung ceased production and sales of the device after scores of units overheated or caught fire because of defective batteries.
Apple has had its own quality control issues lately. Apple on Monday announced that it will replace defective batteries in iPhone 6S handsets produced during two months last fall.
"Apple has determined that a very small number of iPhone 6S devices may unexpectedly shut down," the company said in a statement. "This is not a safety issue and only affects devices within a limited serial number range that were manufactured between September and October 2015."
Apple stock rose 1.5% to 111.75 in the stock market today, retaking ta 110.33 buy point.
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