Apple Nets 70% of Smartphone Industry’s Profits Last Quarter

While Apple is known to get the lion’s share of the smartphone industry’s revenues, its lead has shrunk by a hair’s breadth in recent times. It is still ranked first and above others when it comes to operating profits by a huge margin.

Biggest Piece of The Pie

The company collected 69.9% of the entire industry’s profits for the quarter of July-September, according to the research firm Strategy Analytics.

If anything, it has grown, given that in 2015 it used to be 66.9%. Samsung was ranked a distant second, snatching 21.8% of the revenues in the market. The rest of the industry was left to contend with a paltry 8.3% of the remaining profits.

Closer to Samsung in Revenues

Things were much, much closer when it came to overall revenue in the industry. Apple, as expected, sat atop with a 32% market share. However, Samsung wasn’t too far behind here with a 23.1% share. This wasn’t unexpected at all given the iPhones’ monstrous average selling price of $618 in the last quarter, which was still somehow below the industry average.

Regardless, the newly unveiled iPhone X will inflate it more than a bit this quarter. The new phone has a gross margin of 64%, which is marginally higher than the iPhone 8 Plus’s 63%. Still, the difference in revenues used to be much wider just two years ago, when it was 15.5 percent compared to just 8.9 percent in the last quarter.

Lower Shipments

In terms of shipments, Samsung still led the pack thanks to its decidedly wider range of smartphones, including the popular A and J series. It had an overall 21.2 percent share of the market, compared to Apple’s 11.4 percent, in the last quarter.