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Apple Took 92% Of Smartphone Industry Profits In Q4

Apple accounted for 18% of smartphone unit sales in Q4, but captured a whopping 92% of industry profits, Canaccord Genuity said. (Shutterstock)

Apple (AAPL) accounted for 18% of smartphone unit sales in the fourth quarter, but it captured a whopping 92% of industry profits, Canaccord Genuity reported Tuesday.

Apple has a long history of taking the vast majority of smartphone industry profits. In some quarters, it accounts for more than 100% of smartphone profits because other vendors lost money, according to Canaccord Genuity.

Among six major vendors surveyed, four were profitable in smartphone sales in Q4, Canaccord analyst Michael Walkley said in the report. They were Apple, BlackBerry (BBRY), Samsung and Sony (SNE).

Samsung accounted for 9% of smartphone industry profits in Q4, while Sony took 1% and BlackBerry less than 1%.


IBD'S TAKE: Apple stock has an IBD Composite Rating of 73, meaning it has outperformed 73% of stocks in key metrics over the past 12 months. For more information on Apple stock, visit the IBD Stock Checkup.


Vendors losing money on smartphones last quarter included Microsoft (MSFT) and LG Electronics, Canaccord Genuity said.

Apple benefited from strong sales of the iPhone 7 Plus and Samsung's Galaxy Note 7 recall, Walkley said.

Apple stock rose 1% to finish the regular trading session at 131.53 on the stock market today. Its shares are inching closer to their all-time high of 134.54, reached in May 2015, and are 12% extended from a breakout last month at 118.12.

Canaccord's Walkley reiterated his buy rating on Apple stock and raised his price target to 154 from 142.

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