Apple + Samsung = 106% of handset operating profits in Q1
Canccord Genuity's U.S. surveys indicated the Galaxy S5 was the #1 selling smartphone at all four tier-1 U.S. carriers in April (iPhone 5S was #2). They believe Apple and Samsung (SSNLF) once again dominated handset industry operating profits and combined to capture a remarkable 106% of Q1/14 handset industry profits as other leading OEMs such as BlackBerry, Nokia (MSFT), and HTC posted operating losses or near breakeven results. Thet believe their RFIC coverage cos AVGO, SWKS, RFMD, and TQNT and baseband supplier QCOM are well positioned to benefit from the China TD-LTE smartphone ramp for the remainder of 2014. They anticipate re-accelerating smartphone-derived royalties for ARMH in H2/14.