Analyst: Apple's iPhone captures 103.6 % of smartphone profits in wake of Samsung Note fiasco

Analysts at BMO Capital Markets estimate that Apple captured 103.6 % of total smartphone industry profits in the wake of Samsung's monumental product recall for its faulty and now discontinued Galaxy Note 7 flagship. Samsung's profits are at 0.9%. BMO says that Apple also took more than 100 % of profits because a majority of vendores (i.e. LG, HTC) recorded losses on theri smartphone divisions this third quarter.

Samsung tried to steal the thunder from Apple's iPhone 7, they rushed their product to market and even bumped up the name to Note 7 (foregoing the Note 6). This backfired completely when Note 7 devices started exploding and causing fires. This propelled Samsung's brand into notoriety to the extent that no Note 7's were allowed on any airlines and the company recalled the product to the tune of $2 billion loss.

Apple's new iPhone 7 line saw high demand thanks in part to its new camera setup as well as various anticipated features like stereo speakers, water resistance, improved performance as well as new colour treatments. The iPhone is credited with bringing in around 65 per cent of Apple's profits and is its most important product.

Source: BMO Capital Markets via 9to5Mac