Apple Took Home 92% of the Industry’s Profits in the Last Quarter

Apple has been on a roll this past year. From record iPhone sales to biggest ever quarter in corporate history, the company has achieved it all but how much lead it commands over the smartphone industry is just being known.

According to a report by WSJ, the Cupertino-based company collected 92% of the entire industry’s profits, that too while holding just 18.3% of global smartphone shipments. Not bad for a firm which hadn’t released a phone just eight years ago.

At second and a few light-years away is Samsung, which took home 15% of total profits. But that’s 107%. The rest of the figure was evened out by the losses or breaking even by the remaining parties in the industry.

Average iPhone price is $659 while the average for Androids is $185

Apple’s domination was to be expected mostly due to its strategy of placing its products at a higher price point. For comparison, the average selling price of the iPhone stands at $659, increasing markedly from $624 before the release of the new iPhones. Android’s average selling price stood at $185 in the meantime, which is actually an improvement from the past but still nowhere near as close.

The same strategy is applied in the PC market, where Apple sells just six units out of every 100 units yet attains half of the profit.

Even in the PC market, Apple manages 50% profits with 6% of the sales share

Things weren’t as simple at the time of its release, though. In 2007, Nokia took home two-thirds of the industry’s profits. By the end of the decade, Apple and BlackBerry had joined the fray. By 2012, Apple and Samsung virtually divided the entire industry equally amongst themselves.

However, this musical chair is unlikely to continue in the future, as it would take a major screw-up on Apple’s part to lose this formidable position.



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