Apple takes 92% of smartphone market profits on just 20% of sales

[NinerL]

" Android may have the market share, but it’s an entirely different story when it comes to profit share: the latest estimates from Canaccord Genuity indicate that Apple takes 92% of the profits for the entire smartphone industry despite accounting for only 20% of sales.

Or, as the WSJ puts it:

Roughly 1,000 companies make smartphones. Just one reaps nearly all the profits.

Samsung took a further 15% of the profits – and if you were wondering how that rather odd math works, it’s because most of the other players make a loss, so the two companies make more profit between them than the smartphone industry as whole … 

 

Canaccord CEO Mike Walkley said that at the time Apple first entered the smartphone market in 2007, Nokia was taking around two-thirds of the profits (a far cry from today). By 2012, the profit split was around 50:50 between Apple and Samsung. Since then, he said, the “high-end tier has really shifted away from Samsung to Apple.”

Apple’s share of smartphone profits is up from 65% a year ago, though very slightly down on its 93% share in the holiday season. It has been reported that Apple plans to produce a record number of iPhone 6S handsets this year, aiming to top 90M units by the end of the year."

Source: http://9to5mac.com/2015/07/13/apple-smartphone-profit-share/

 

Quite amazing how one company holds over 90% of profits, with only 20% of sales.

Here's another great read http://www.wsj.com/articles/apples-share-of-smartphone-industrys-profits-soars-to-92-1436727458

[blackadder]

, wow what a bad market to be in

[Dzzope]

Quite amazing how one company holds over 90% of profits, with only 20% of sales.

Shows you how much they make off every fool that buys one.

[ShadowCaptain]

Shows you how much they make off every fool that buys one.

 

Looks at my iPhone 6 128gb and iPad on the table

[Murdoch]

Apple takes 92% of the profits

 

Samsung took a further 15% of the profits

 

Haha, What? Between them, they got 107% of the profits, that's OP as shit.

[Dredgy]

Shows you how much they make off every fool that buys one.

 

Samsung would have similar margins on their flagships. The problem with Android (in terms of profit, at least) is the same software is available on cheaper devices, so you don't have to buy the flagship.

[Dredgy]

 

Samsung took a further 15% of the profits

 

 

Read the first post. It's because every other company has negative profits (losses).

[sannukas0016]

This is pretty sad actually, apple makes around 600 dollars profit per phone. Literally printing money.

[othertomperson]

Samsung would have similar margins on their flagships. The problem with Android (in terms of profit, at least) is the same software is available on cheaper devices, so you don't have to buy the flagship.

 

Probably more tbh. The Samsung Galaxy S6 was much more expensive than the iPhone 6 when I was looking for an upgrade. In fact it was the most expensive of any brand -- HTC was somewhere between them and Apple was the cheapest of the three.

[Dzzope]

Samsung would have similar margins on their flagships. The problem with Android (in terms of profit, at least) is the same software is available on cheaper devices, so you don't have to buy the flagship.

This is it... Flagship devices are not worth it... But apples whole range are in the same regions as far as cost and margin are concerned.

[othertomperson]

This is it... Flagship devices are not worth it... But apples whole range are in the same regions as far as cost and margin are concerned.

 

Apple do not have a "range". They have the iPhone 6... and that's it. Last gen they had the 5, 5c and 5S but they've not done that this time around.

[Dzzope]

Probably more tbh. The Samsung Galaxy S6 was much more expensive than the iPhone 6 when I was looking for an upgrade. In fact it was the most expensive of any brand -- HTC was somewhere between them and Apple was the cheapest of the three.

Sim free?

Apple devices also have less technology build in (until they actually occasionally do something revolutionary)

[Dzzope]

Apple do not have a "range". They have the iPhone 6... and that's it. Last gen they had the 5, 5c and 5S but they've not done that this time around.

I mean across all their devices.. iphone, pad, pod, book etc

[patrickjp93]

Shows you how much they make off every fool that buys one.

Perhaps if Android could just provide a no-hassle experience for the same price with better battery life, I'd buy Android! In the meantime, I'm very happy with my 64GB iPhone 6.

[Dredgy]

Apple do not have a "range". They have the iPhone 6... and that's it. Last gen they had the 5, 5c and 5S but they've not done that this time around.

Actually, they have 4 iPhone currently for sale. The 6 Plus, 6, 5S and 5C.

[patrickjp93]

Apple do not have a "range". They have the iPhone 6... and that's it. Last gen they had the 5, 5c and 5S but they've not done that this time around.

Uh, the 6 & 6 Plus are already both out. The 6S comes before the end of the year.

[jaggysnake57]

Shows you how much they make off every fool that buys one.

 

 did you bother to read the post or did you just derp apples shit....lets slate them to be edgy..

[marldorthegreat]

*CLAP**CLAP**CLAP**CLAP**CLAP**CLAP**CLAP**CLAP* Good on apple for being profitable *CLAP**CLAP**CLAP**CLAP**CLAP**CLAP*

[Real_PhillBert]

Perhaps if Android could just provide a no-hassle experience for the same price with better battery life, I'd buy Android! In the meantime, I'm very happy with my 64GB iPhone 6.

 

Now you have gone and done it...

 

 

Time to hide, before the fanbois show up.

[Humbug]

Apple makes good devices, and a good user experience.

 

But they also rely a lot on

[othertomperson]

 

Uh, the 6 & 6 Plus are already both out. The 6S comes before the end of the year.

 

The 6+ isn't really a cheaper or more expensive tier of the same class of product, it's a phablet. I mean you could consider it range differentiation, but I was more talking about differentiation by price and tier. I consider them both flagships. Also the 6S is more the next iteration than anything else. It's like the 4 and the 4S. I misspoke before -- the 5 was released quite a while before the 5S and 5C, so they are different sub-generations rather than concurrent releases. The 5S and 5C were different concurrent tiers, though.

 

Sim free?

 

Yeah. The price of a contract added about £200 onto the price of any one of them by the end of the contract. Not value for money at all, especially given how much of my usage is via wifi anyway.

 

 

 did you bother to read the post or did you just derp apples shit....lets slate them to be edgy..

 

I think having a disapproving opinion of Apple on this forum is about least edgy thing imaginable, short of going to Sega HQ in the early 90s and saying "NINTENDO, EH >:|"

[escape093]

Never owned an Apple product in my life!

[Dzzope]

Perhaps if Android could just provide a no-hassle experience for the same price with better battery life, I'd buy Android! In the meantime, I'm very happy with my 64GB iPhone 6.

Have no issues with my stock Nexus 5.. And anything I don't like I can change.. This is why i don't like IOS... I don't mind most things but the few that I want to change I can't...

Battery usually lasts as long as my friends 5s.

Not hating on Apple users.. I just don't like companies that charge huge mark-up because F u... (ie, they can or have an image that allows them to)

[JustChilliing]

I always complain about Apple and the silly "upgrades" they do.

 

Yet I wouldn't even consider a different phone to my 5S, and I use my iPad all the time. Something about their stuff just bleeds "Want".

[farhanorakzai]

This is pretty sad actually, apple makes around 600 dollars profit per phone. Literally printing money.

you're forgetting about all of the marketing/advertising they have to pay for to promote the iphone, the engineers for r&d and all the apple store employees they pay to sell it. They're not making as much of a profit off of it as you think they are