Apple's reign on the throne of the world's most profitable handset vendor for almost the last four years was usurped by Samsung in the second quarter of this year, according to the latest research from Strategy Analytics' Wireless Device Strategies (WDS) service. Samsung's operating profit for its handset division (both smartphones and feature phones) stood at US$5.2 billion, compared to Apple's US$4.6 billion operating profit.
Samsung's claim over the position of most profitable vendor is suspected to be the result of strong volumes, high prices and tight cost control (the last two of which are probably the reason why the Galaxy Note 3 only costs $240 to make, but is priced at $800 and more, which is a huge profit margin even if you consider R&D and other costs), while Apple's profit margin has continued to slip due to lackluster iPhone 5 sales, and increased competition from rivals, particularly in China.
