Thanks to its impressive hardware and unique mobile operating system, Apple has been standing tall against its rivals in the smartphone industry. According to a recent report, during Q3 2015, the total smartphone industry profits of Apple stood at an unbelievable 94 percent. Compared to the previous quarter, it is up from 92 percent and 85 percent before it.
The Research Report
Canaccord Genuity Research, the organization behind the report also says that Samsung, the tech giant’s biggest rival in this particular industry, was only able to take a profit share of 11 percent. While the total equals to 105 percent in terms of profit sharing, it should be noted that other smartphone manufacturers reported heavy losses on smartphone sales. One analyst has reported that out of several manufacturers out there, HTC, BlackBerry, and Sony have suffered extreme losses. Recently even Lenovo joined the club, having reported its first ever loss in six years.
Reasons for Lower Profit Margins on Android Products
One of the primary reasons why losses have been striking several Android smartphone manufacturers is because of the saturation of Android handsets in the market. There’s also the issue of fragmentation of Android OS versions, which also turn off prospective buyers. These days, more and more manufacturers are competing selling devices that run the same platform, leading to diminished profit margins. The entrant of Chinese manufacturers like OnePlus and Xiaomi is also expected to minimize profit margins since these hardware makers bring affordable quality mobile devices.
Sales and Profits
As for Apple, the company earned its high share of profits despite the fact that it just sold 48 million smartphones this quarter when compared to the sheer volume of Android smartphones as a whole. Samsung sold some 81 million units during the same quarter for comparison. Apple is rumored to release a new iPhone 6c model during 2016, which should bolster its profits even further.
While some readers might argue that Android still holds the highest operating system market share against iOS and Windows Mobile, individual companies are bearing the losses due to heavy saturation of Google’s operating system. Do you think Google can compete with Apple when it comes to premium products? Let us know below.