Apple once again recorded over 100% of the smartphone market’s operating profits in the third quarter, dominating its competitors, according to BMO Capital Markets.
BMO Capital Markets analyst Tim Long estimates the iPhone accounted for more than 100% of the smartphone market profit because other vendors lost money in the sector. As a result, Apple has more smartphone profit than the industry netted overall. This is an improvement over the 90% of smartphone profits that Apple Inc. registered last year, Long said in a research report last Thursday.
The smartphone wars quite literally heated up recently, with the Samsung “Galaxy Note 7” being recalled, due to several units spontaneously catching fire. Despite Samsung’s lead in market share, which BMO has at 21.7% of the smartphone market based on units sold in Q3, the Korean firm makes very little profit.
We still regard Apple stock as undervalued and reiterate our buy status.