Everyone Loves iPhone 5, Further Screwing Up an Unbalanced Smartphone Industry

By Michael Comeau, Minyanville Staff Writer

Now let's figure out Samsung's and Apple's combined year-over-year growth rate. That would be calculated as follows:

Wow! That's a lot bigger than the industry's 42.1% growth rate.

So let's strip Samsung and Apple out of it and see what we get.

It goes like this:

Think about that.

Apple and Samsung grew 96% while the other half of the industry grew by just 12%.

12%!

And I want you to remember something -- Apple had lousy iPhone sales during the second quarter because consumers started to delay their purchases in anticipation of iPhone 5.

So Apple's smartphone market share is actually set to skyrocket through the back half of the year!

That 49.5% number could easily hit the 55-60% mark if not higher by year-end, which creates a whole lotta problems for every component supplier that isn't hooked into Samsung and/or Apple.

In fact, this morning, I caught this little excerpt from a Needham research note on chipmaker Skyworks Solutions SWKS: "Unfortunately, weak demand from certain OEM customers appears to be offsetting rev growth at AAPL driven by increased dollar content in the iPhone 5."

Of course, as part of our duty to investors, we've been screaming and hollering about this undercovered issue all year long. 

We also can't ignore what's going on in the tablet market. Apple is actually taking market share from the Google GOOG Android tablets that were supposed to shake things up!

So the tablet market is even more unbalanced than the smartphone market, and I don't want to see what happens when the dramatically underpriced Amazon AMZN Kindle Fire HD hits it big. 

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