New research from Strategy Analytics shows that Apple (NASDAQ: AAPL) was the number one seller of smartphones worldwide, with a 23.9% market share and sales of 37 million units. The results almost exclusively are due to the demand for the iPhone 4S. Apple’s strong earnings were driven to a large extent by the smartphone. The research also shows that Samsung and Apple now have commanding leads in the sector. Samsung’s share last quarter was 23.5% of the 155 million smartphone units sold in the period. Troubled Nokia (NYSE: NOK) finished third with a share of 12.6%. HTC, Motorola (NYSE: MMI), Research In Motion (NASDAQ: RIMM) and LG were not even mentioned.

Spain’s Unemployment

Spain’s unemployment climbed to 22.6%, which is double the eurozone average. The figure is at a 15-year high. It is hard to see how it can be brought down. The Spanish government already has to deal with a budget gap, severe financial problems among its states, a collapsed banking system and a ruined real estate market. Capital markets investors and EU officials expect Spain to show it can produce an austerity-based budget. That leaves no money to stimulate job growth.

Greek Economy Deteriorates

The pressure on Greece to cut government costs has become even greater in the past day. Greece needs the next tranche of its bailout package — 130 billion euro. A new IMF report has cast a shadow over the negotiations. The data show that the Greek economy is deteriorating faster than forecast. The pressure to implement more austerity measures is relentless. The conventional wisdom that Greece will default in some way gains more evidence as the nation awaits the next stage of its bailout.

Starbucks Robust Earnings

Starbucks (NASDAQ: SBUX) offered more evidence of its turnaround. Revenue rose 16% in the last quarter to $3.4 billion. EPS were higher by 11% to $0.50. The numbers were impressive but do show margins fell slightly. That has not stopped the company from investing in expansion. It opened 241 new stores in the quarter. Comparable store sales were up 9%. If Starbucks is any proxy for the recovery of middle class consumer spending, then spending is on the rise. A $5 cup of coffee is a discretionary decision, if there ever was one.

Douglas A. McIntyre

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