While 2016 saw the rise of Chinese smartphone companies, it is still hard to see them making a profit with the presence of two giants in Apple & Samsung.
According to a report from Strategy Analytics through The Korea Herald, the entire smartphone industry enjoyed profits of $53.7 billion. Out of that, Apple earned $44.9 billion, or 79.2%.
Small Share With Large Profits
That is truly remarkable, if not surprising, when you consider Apple’s market share of 14.5-percent. Apple still had its best year ever in terms of sales, which saw it momentarily pass Samsung in terms of sales for the first time in year, even if it was helped slightly by a calculation quirk that saw it counting an extra week.
This goes on to show that Apple is much more successful as a business compared with Android phone makers due to maximizing profits out of a relatively smaller market share of the smartphone industry.
Samsung With A Measly Profit
Following Apple was Samsung which garnered a comparatively less impressive profits of $8.3 billion, despite its slightly larger market share of 14.6%
Following the two companies are the Chinese, namely Huawei, Oppo and Vivo, although their shares are comparatively smaller at 1.6, 1.5 and 1.4-percent, respectively.
Apple’s lead has declined compared with previous years however. The company according to another report at one point had more than 100% of the industry’s profits, however, that seems to have changed for now.
Its share of the industry profits could still go higher with the launch of the next iteration of their flagship, iPhone 8 planned for this year with a price point of more than $1000.