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

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## Apple's new iPhone 5 is a megahit.

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Well, one thing you may not know is the degree to which Apple and Samsung (KRX:005930) now control the smartphone industry.

A lot of people think they 'get' how big the Apple iPhone and Samsung Galaxy lines are, but I want to throw some truly underappreciated numbers at you.

I call them underappreciated because every time I recite them to someone, they look at me like I have eight heads. Investors far too often overestimate the uniqueness of their knowledge base and ideas, but sometimes I feel like I'm the only person who takes five minutes to do this math.

And keep in mind, I'm no genius -- I got a B- in pre-calculus in college!

So let's look at IDC's Q2 2012 smartphone market share numbers:

So let's get down and dirty.

To start, let's add up Samsung's and Apple's market share:

32.6% + 16.9% = 49.5%.

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

(50.2 + 26.0)/(18.4 + 20.4) - 1 = 96.4%

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:

(153.9 - 50.2 - 26.0)/(108.3 - 18.4 - 20.4) -1 = 11.8%