November 26, 2024

Apple's Share of Smartphone Profits Climbs to 92% [Chart]

Posted July 13, 2015 at 4:01pm by iClarified · 10306 views
While about 1,000 companies make smartphones, Apple reaps nearly all the profits, according to estimates from Canaccord Genuity.

Apple took 92% of total operating income from the eight top smartphone makers in the first quarter. Samsung took 15%. The two companies account for more than 100% because the other makers either broke even or lost money.

The news comes as Apple is reportedly placing a record breaking order for its next generation iPhone with suppliers and Microsoft announced a $7.6 billion dollar write off on its acquisition of Nokia Devices and Services.

Apple's profitability is even more incredible given that it sells less than 20% of smartphones. Part of the way the company keeps profits high is by keeping its prices high and by staying at the forefront of technology. Last year, the iPhone sold for a global average price of $624 compared to $185 for smartphone running Android, says Strategy Analytics.

It's rumored that the iPhone 6s will be slightly thicker to accommodate a new Force Touch feature for the display but otherwise look very similar to the current device. Other predictions for the iPhone 6s include a new NFC chip, 16GB of storage, a faster LTE chip, a Rose Gold color option, 7000 series aluminum, 12MP Camera, 4K Video Recording, 240fps Slow-Mo, and more.

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[via WSJ]