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Apple accounted for 91% of smartphone profits last year

Posted: , by Alan F.

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Apple accounted for 91% of smartphone profits last year
New graphs produced by Fortune show just how much Apple is dominating the smartphone industry in terms of profits. Sure, Samsung has the largest market share among smartphone manufacturers. According to Canaccord Genuity, the source of the data used in this story, Sammy had 23.9% of the global market last year. Apple, on the other hand, was second with a 17.2% slice of the pie.

But 91 cents out of every dollar of profit in the industry is going into Apple's pockets. Samsung grabbed 14% of the profits last year. Now, you're probably thinking "How can those two companies combine for 105% of profits?" That is because the other manufacturers are reporting losses. We also should note that many Chinese firms such as Huawei, Xiaomi, and ZTE do not even report profits.

As far as Apple is concerned, its share of smartphone profits might even increase in 2016. As we told you earlier today, UBS analyst Steve Milunovich forecasts that the 4-inch Apple iPhone 5se, expected to go on sale March 18th, will add an addition $1.5 billion of net income to Apple's bottom line over the phone's first 12 months in existence.


source: Fortune

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posted on 14 Feb 2016, 12:16 17

1. darkkjedii (Posts: 19733; Member since: 05 Feb 2011)


Those who troll Apple articles, bashing it about its smaller market share should pay attention to this. Apples business model isn't market share, its profit margin. Googles is market share, and they both excell at them.

posted on 14 Feb 2016, 12:25 10

3. Well-Manicured-Man (Posts: 260; Member since: 16 Jun 2015)


True spoken. However, I am concerned that Apple will stand only for profit margins in the future. This will destroy their brand.

I hope Cook wakes up soon and realizes that sacrificing some additional %-points of the current profit margin will help Apple to sustain the most profitable company in the world.

posted on 14 Feb 2016, 12:38

5. darkkjedii (Posts: 19733; Member since: 05 Feb 2011)


I can dig that comment bro. Cook has opened iOS up a lot, hoping there's more to come in iOS 10.

posted on 14 Feb 2016, 19:39

78. Mxyzptlk (Posts: 11224; Member since: 21 Apr 2012)


I agree. Although I'm rocking a Moto X I am eagerly waiting for the next evolution of the iPhone and iOS 10.

posted on 15 Feb 2016, 00:29 2

86. sgodsell (Posts: 3224; Member since: 16 Mar 2013)


This plain and simply tells the world how overpriced Apple products truly are. When I see an iPhone 6s 16gb with no OIS and a low resolution HD display for $900 Canadian dollars. Then that is why Apple has record profits.

posted on 14 Feb 2016, 12:45 5

8. Finalflash (Posts: 2769; Member since: 23 Jul 2013)


Question is, will he? He is a numbers guy and will always be. Jobs was an entrepreneur and had an eye for product. This is a complete mismatch and happens to every corporation once the original visionaries retire. The replacements for said visionary are usually people that were hired for another job they were better at. Usually, that job doesn't require being a visionary.

posted on 14 Feb 2016, 13:23 11

14. Bm888 (Posts: 390; Member since: 06 Jul 2015)


Thanks to the iLogo.. No matter how small or slow upgrade to iPhones their is...the Loyalty of iFans is steadfast...

posted on 14 Feb 2016, 14:44 26

32. another1 (Posts: 157; Member since: 25 Dec 2015)


^^^^^^you do realize the same exact thing can be said about Samsung fans!??^^^^^

Who the fu*k gave you 5 upvotes?

Better question, why is this entire thread filled with people trying to bash Apple???

posted on 14 Feb 2016, 18:45 1

73. S.R.K. (banned) (Posts: 678; Member since: 11 Feb 2016)


Apple has definitely perfected its magic trick. There’s no doubt about that. The company has the ability to brainwash, and I say that as someone who has been brainwashed myself by the beauty and simplicity of Apple products. But it stretches far beyond the actual hardware, software, or services, and delves straight into brand perception.

Reports even suggest that fanbois’ brains respond to Apple imagery the same way that religious fanatics’ brains respond to religious imagery. It’s an incredible feat, and some are so very indoctrinated that they stop trusting in their own sensory perception and simply trust the brand. Whole-heartedly.

posted on 14 Feb 2016, 19:40 3

79. Mxyzptlk (Posts: 11224; Member since: 21 Apr 2012)


Don't pay the haters any attention. They call Apple fans blind loyalists yet the haters, eg. Drones are the same way with Android and Samsung.

posted on 14 Feb 2016, 18:01 1

52. French_Toast (Posts: 81; Member since: 02 Sep 2015)


So so true.

Apple sees the Isheep as user it can steal money without end.

posted on 14 Feb 2016, 20:20

81. Diezparda (Posts: 837; Member since: 23 Oct 2013)


It's called branding bro, Apple set user mindset as premium branded product, it's expesive, prestigious & more like you're buying a lifestyle.

posted on 14 Feb 2016, 12:42 39

7. Finalflash (Posts: 2769; Member since: 23 Jul 2013)


That is the stupidest thing to be proud of and literally marks an idiot as a consumer, so I hope you don't condone that line of reasoning. This can also be applied to most corporations out there as well. The primary reason that Apple makes so much money is because they provide the cheapest smartphone for the highest price. None of the benefits of those profits wash down to the consumers because Apple doesn't proportionally invest back any of that money. Most of those profits are invested in bank vaults overseas. If they were investing proportionally in new industries and technology, there could be a case made for it. Yet seeing as Apple just invented selling air, we can safely assume there is no such case to be made here.

posted on 14 Feb 2016, 13:08 1

11. UglyFrank (Posts: 1580; Member since: 23 Jan 2014)


No truer words have been spoken. +1

posted on 14 Feb 2016, 14:37 21

31. SamsungPhanboy (banned) (Posts: 765; Member since: 31 Mar 2015)


Finalflash: Your remarks are completely idiotic. Dark's remarks were just fine.

Apple makes so much money because people VALUE the products they produce. Why is this so hard for you Apple hating idiots to understand?

Apple consistently makes products consumers want to have. People LOVE their Apple products, and it isn't purely because of the prestige of having the Apple logo. People line up to buy Apple products because the high ratings they receive year after year, the intuitiveness in regards to the UI, the well built design, and impeccable customer service.

For you to try to suggest that profits Apple makes does NOT trickle down to the consumer is one of the most idiotic things you could ever say. Research and development costs, technology acquisition costs, executive talent, and other intangibles will always trickle down to the consumer and to the final product.

There is a Reason the GOOGLE THEMSELVES use MACS.

I am going to make a consistent effort to shut you guys the hell up when you start drinking your Apple haterade. It's getting to the point where it's simply ridiculous. Apple could create time travel and you haters would still be in here trying to hate.

Apple is doing well because they make great products. For the love of God stop trying to discredit them.

posted on 14 Feb 2016, 16:41 4

43. NoToFanboys (Posts: 1111; Member since: 03 Oct 2015)


Great products = true.
But that doesn't change the fact that their prices are higher than they should be, wouldn't you like it if they like $100 cheaper? That would give them EXCELLENT value, that was his point. But obviously you are butthurt so you instantly called his staement idiotic.
Your logic of "anyone who says anything remotely niegative to Apple must be an hater" is completely stupid.
I am expecting to be called Apple hater or fandroid by you after this lol

posted on 14 Feb 2016, 18:06 2

54. French_Toast (Posts: 81; Member since: 02 Sep 2015)


ISheep are blind to reality

posted on 14 Feb 2016, 18:14 5

57. darkkjedii (Posts: 19733; Member since: 05 Feb 2011)


No such thing as an iSheep, simply people that prefer Apple products. Just as there's no such thing as a FordSheep, just people that prefer Ford. There is a such thing as an internet troll though^^^^

posted on 14 Feb 2016, 18:27 1

60. NoToFanboys (Posts: 1111; Member since: 03 Oct 2015)


By iSheeps they mean hardcore fanboys, (you are NOT one of them darkkjedii), those are the ones who are very annoying and all they do is bash/defend not because of facts, but because of brands, think of them as racists but with companies instead of humans.

posted on 14 Feb 2016, 18:41 1

71. darkkjedii (Posts: 19733; Member since: 05 Feb 2011)


True, then read posts 61, 54, and 52. Internet trolling.

posted on 14 Feb 2016, 20:03 1

80. NoToFanboys (Posts: 1111; Member since: 03 Oct 2015)


LOL at that one. Yeah, he's just a troll.

posted on 14 Feb 2016, 20:24

82. darkkjedii (Posts: 19733; Member since: 05 Feb 2011)


That's the only thing he comes to the site for.

posted on 14 Feb 2016, 18:29 3

61. French_Toast (Posts: 81; Member since: 02 Sep 2015)


Isheep can buy a Chevy chevette for the price of a BMW.

As long as the Isheep remain blind , Apple will put plenty of money in his pockets.

posted on 14 Feb 2016, 18:08 1

56. darkkjedii (Posts: 19733; Member since: 05 Feb 2011)


Damn good post dude. +1 no +10

posted on 14 Feb 2016, 18:32

63. S.R.K. (banned) (Posts: 678; Member since: 11 Feb 2016)


Describing Apple users as “sheeple,” Levings said “[Apple users] follow the crowd. Techy, geeky personalities tend toward Android, whereas people who choose iPhone are more status conscious. The iPhone is a status symbol. Why do people wait in these insanely long lines? Status. There seems to be a bit of brainwashing going on.”

Levings believes Apple is too controlling over its products, adding that he prefers to download music and movies from his own sources. This is the consensus among Android users, and while Levings surely downloads his media legitimately, we fear this doesn’t apply to the rest of the Android camp.

posted on 14 Feb 2016, 18:33 1

64. S.R.K. (banned) (Posts: 678; Member since: 11 Feb 2016)


iDevice owners are less vocal about their choice. At least according to this second quote we stumbled upon.

Dan Nainan, a comedian and former senior Intel engineer who lives in New York, is loyal to his iPhone. So much so that he claims the device pretty much runs his life. He used to own a Samsung Galaxy Note and says he “could not stand it.” Nainan, who once appeared in one of Apple’s Get a Mac commercials, had this to say about his choice:

“I'm the ultimate geek, but when it comes to my phone I don't want a lot of nonsense. On the Android there are too many variables.”

posted on 14 Feb 2016, 18:34

65. ibend (Posts: 3501; Member since: 30 Sep 2014)


google use macs? lol
just who the hell is google in that word?

posted on 14 Feb 2016, 18:45 3

74. Ninetysix (Posts: 2339; Member since: 08 Oct 2012)


Google employees mostly use macs and Linux boxes. Google it.

posted on 15 Feb 2016, 03:06 1

90. tedkord (Posts: 10220; Member since: 17 Jun 2009)


And Apple uses PCs. So what?

posted on 15 Feb 2016, 08:31 1

95. Ninetysix (Posts: 2339; Member since: 08 Oct 2012)


Nobody asked about what Apple uses broseph. Pay attention please and read before posting.

posted on 14 Feb 2016, 18:35

66. S.R.K. (banned) (Posts: 678; Member since: 11 Feb 2016)


The other day, one of my friends, who works in the film industry, told me that in order to truly be accepted at work, you have to have an iPhone. Of course, owning an Android myself, I freaked. So I continued to ask her repeatedly the choice, decision, and argument centered around this. Her overall point was that even though she would entertain the idea of getting an Android, it was much easier to be included in “The Club” if you had an iPhone at work. So with this said, are we brainwashed?

posted on 15 Feb 2016, 02:34

88. MSi_GS70 (unregistered)


His remarks aren't idiotic.. He is right..
U think that many ppl in the world gonna pay attention of what cpu or gpu or what resol. It has?
Pleeaaee don't be naive..
Many ppl around the world just see apple logo and they heard they seen, so that's why they defo not doing any analysis what is inside the phone especially women..
They just buys it bcos
For first : it is from USA
Second : everybody (or many) has it
Bcos kids in schools jellaous that he has it and he doesn't
Look, it hasn't got qhd screen, it hasn't got 4gb, it hasn't got, nfc, it hasn't got great battery it hasn't got widgets and still is the best why?
Think why..
I said it loong time ago.. On next iPhone if apple would attach bulls horns ppl will STILL buy it..
It is now in end users in ppl.. And there is another fact that in Usa there are i stitutions that they buy for their busines like 1000 units and tell employees you will be using this phone.. And institutions around the world are milions so count it by each will buy 500-1000 units..

posted on 14 Feb 2016, 13:29 8

15. rd_nest (Posts: 1590; Member since: 06 Jun 2010)


There is nothing to troll.
It shows which 2 companies are selling most overpriced product. In Samsung's case atleast they are selling more phones and profit margin is not out of roof.

BOM of iPhone 6s is just $245. And check how much we pay for it? This is not something I made up, just check in Google.

posted on 14 Feb 2016, 14:06 21

20. SamsungPhanboy (banned) (Posts: 765; Member since: 31 Mar 2015)


It actually doesn't, rd_nest.

You have absolutely no clue of what you're are talking about, and it is quite obvious you have no idea about the meaning of value.

I'm really sick of you spreading your BS, and it's quite obvious you hate Apple with all your heart. Too bad even the most hardcore Apple haters, with somewhat of a business education, will tell you if Apple products are overpriced, Samsung, Microsoft, LG, and Google products are overpriced as well.

So please, shut the hell up already.

posted on 14 Feb 2016, 14:14 7

23. another1 (Posts: 157; Member since: 25 Dec 2015)


I'm so glad you called him out. He's consistently undermines what Apple does while praising Samsung.

He's honestly one of the biggest trolls on PA

posted on 14 Feb 2016, 14:25 13

26. SamsungPhanboy (banned) (Posts: 765; Member since: 31 Mar 2015)


I just can't believe he's trying to act as if Apple having 91% of profits in 2015 isn't a big deal.

I don't care if you don't like Apple,Google, or any company. But to not give them credit when it's due is simply ridiculous.

And everyone: PROFITS DO MATTER. More profits means more R&D into the product, more talent taking on more projects and more innovation to ultimately trickle down to the consumer. You'd have to be a complete moron to think profits do not matter.

posted on 14 Feb 2016, 14:48 4

34. Finalflash (Posts: 2769; Member since: 23 Jul 2013)


LOL, more profits mean more R&D. You must be one of the poor saps that believe in reagonomics like trickle down economics too.

posted on 14 Feb 2016, 14:54 6

35. another1 (Posts: 157; Member since: 25 Dec 2015)


LOL, um it actually does, as the Company has so much liquidity, that allows them to take on whatever they want to create better products.

posted on 14 Feb 2016, 18:52 1

75. S.R.K. (banned) (Posts: 678; Member since: 11 Feb 2016)


Apple’s returned to an age-old business model: vertical integration. iPods don’t work with any software but iTunes; iTunes doesn’t work with phones or MP3 players Apple doesn’t make. The integration has reached a peak with the iPad, an Apple computer based on an Apple processor running Apple’s operating system, whose applications must come via Apple’s App Store, and whose paid-for content will largely come via iTunes. It’s the ultimate lock-in: if you decide in the future to buy a rival’s product, you’ll be starting again from scratch.

Another way to milk them out dry.

posted on 14 Feb 2016, 17:28 1

48. SuperMaoriBro (Posts: 522; Member since: 23 Jun 2012)


not siding with either camp here (I own both Android and Apple products and think both are great), just pointing out your comment that more profits mean more R&D is not so true. Compared to other tech companies, like Samsung, Microsoft, Google, and Qualcom, Apple spends very little of its profits on R&D (easy to find by doing a quick google). Samsung who make a lot less profit than Apple, spend 2-3x more on R&D than Apple (depending on whos report you read). More profits in Apples case doesn't mean more R&D. Depending on which side of the fench you sit on you can read this as positive or negative, eg Apple are more efficient at spending vs Apple are money hungry etc, both sides have valid points.

posted on 14 Feb 2016, 18:03 3

53. another1 (Posts: 157; Member since: 25 Dec 2015)


Think you are missing the point. With more profits, it simply can mean more innovation and R&D, and that Apple will always be able to invest more to keep up with competition. The fact we can't miss is that all companies do not have that luxury. So the consumer can be affected.

And for the record, Apple spent 8.1B on r&d during 2015, which is way up from the year before and the year before that. It makes sense they aren't spending as much as Samsung since Apple basically is dominating the market and has just as much tech packed in their phones as any other manufacturer.

posted on 14 Feb 2016, 18:37

69. S.R.K. (banned) (Posts: 678; Member since: 11 Feb 2016)


ple is using the iPod Touch to build loyalty with pre-teens and teens, even before they have their own phones (think: McDonalds’ Happy Meal marketing strategy). When today’s young iPod Touch users age by five years, they will already have iTunes accounts, saved personal contacts to their iPod Touch devices, purchased hundreds of apps and songs, and mastered the iPhone OS user interface. This translates into loyalty and switching costs, allowing Apple to seamlessly ‘graduate’ young users from the iPod Touch to the iPhone.

posted on 14 Feb 2016, 18:36

68. S.R.K. (banned) (Posts: 678; Member since: 11 Feb 2016)


The kids have voted: The iPod touch is a hotter Christmas gift than the Zune or gaming consoles, topped only by the Kindle in Amazon’s electronics bestseller list. The 8GB and 32GB third-generation iPod touch models ranked #2 and #3 on Amazon, respectively. The Zune ranked #85.

You could say that the iPod touch had the App Store Christmas. Apple’s touch-based media player is brainwashing youngsters for the Apple world. Apple achieved this thanks to its world-class marketing and the power of software. Meanwhile, the lack of compelling advertising killed the Zune this holiday season. That, and the shortage of apps resulting from Microsoft’s hesitance to open up the Zune to third-party developers.

According to the mobile analytics firm Flurry, total iPod touch downloads (all generations) surged nearly 1,000 percent during Christmas Day. In fact, Apple’s media player overtook the iPhone this Christmas, the first time ever that the iPod touch downloads soared past iPhone downloads. The research firm identified “voracious downloaders” as primarily pre-teen and teen audiences.

posted on 14 Feb 2016, 14:08 16

21. SamsungPhanboy (banned) (Posts: 765; Member since: 31 Mar 2015)


And you moron, BOM is not the only thing that factors into price.

There is a whole lot of intellectual or intangible value that factors into the price apple charges. Same goes for Google.

posted on 14 Feb 2016, 15:04 4

36. shahrooz (Posts: 706; Member since: 17 Sep 2013)


A consumer bragging and justifying highest profit margin in mass phone industry... Enough said.

posted on 14 Feb 2016, 15:10 9

37. another1 (Posts: 157; Member since: 25 Dec 2015)


^A consumer that doesn't realize margins of a business can affect the consumer in positive and negative ways and takes selfie pics for tech blogs...Enough said.

posted on 14 Feb 2016, 15:49 1

39. magnanimus (Posts: 524; Member since: 29 Mar 2013)


And you fail to realise you won't see much of the positive ways unless Apple feels threatened. How will Apple feel threatened when the rest of the industry is making a loss? Hence a market monopoly.

We've already seen some of this abuse of power in Apple's latest products (magic mouse 2, New 12' Macbook, iPad Pro, Official battery case). This will only get worse.

posted on 15 Feb 2016, 07:54

94. shahrooz (Posts: 706; Member since: 17 Sep 2013)


1-Who the f**k are you to tell me what should I use as my profile picture?
2-you don't know what profit is, R&D and other stuff that may affect you are the cost spent, you pay for it. and profit is the extra cost you pay, the money that only and only goes to company and investors pocket.

posted on 14 Feb 2016, 17:15 1

46. xfire99 (Posts: 792; Member since: 14 Mar 2012)


You is the biggest moron here. How much is Apple spending in R/D?http://fortune.com/2014/11/17/top-10-research-development/

I dont see Apple in that list.

posted on 14 Feb 2016, 18:07 3

55. another1 (Posts: 157; Member since: 25 Dec 2015)


Maybe because your list is from 2014, you idiotic loser LOL.

Apple spent 8.1B on r&d during fy2015. Clearly you are the biggest moron here, since Apple would have made your out of date list.

posted on 14 Feb 2016, 18:35

67. ibend (Posts: 3501; Member since: 30 Sep 2014)


same goes to all manufacturer..
yet, they still manage to sell their handset at more reasonable price

posted on 14 Feb 2016, 14:46 1

33. Awalker (Posts: 1394; Member since: 15 Aug 2013)


The only entities that should care about smartphone profits are smartphone manufacturers. Their profits shouldn't concern any of us unless you have stock in the company.

posted on 14 Feb 2016, 17:00 1

45. xondk (Posts: 1201; Member since: 25 Mar 2014)


So yeah, I want to try to say one thing, this is not meant as a jab towards Apple or those that like Apple products.

But also what this artikel and statistics are saying.

"Users of Apple products are using significantly more money then users of other products."

Now some may see this as a status symbol, that they have those money to use, others might look at it and wonder why they would pay more for the same or to them inferior products?

posted on 14 Feb 2016, 18:24

58. submar (Posts: 349; Member since: 19 Sep 2014)


it is extreme overprice boy
maybe the profit of 1 iphone = 10 other phone

posted on 14 Feb 2016, 20:54

83. Doakie (Posts: 1865; Member since: 06 May 2009)


I love knowing the company iPhone fanboys love so much is ripping them off. And the biggest kicker is that the fanboys brag about it! It's like idiocracy!

posted on 15 Feb 2016, 02:09

87. Nallaikumaran (banned) (Posts: 61; Member since: 14 Sep 2015)


Apple accounted for 91% of smartphone profits - USA

Becuase Apple just keeps releasing new crap that is just their old crap. They try to earn money by selling old products renamed. It is the biggest money sucking company in the world. Dishonest business.

In fact, Every year Samsung manage to sell MORE Samsung Phones than all iPhones.(World). Samsung Largest Smartphone Seller In 5 Out Of 6 Regions - News. Samsung sells more phones than any other manufacturer..

posted on 14 Feb 2016, 12:21 1

2. shaineql (Posts: 344; Member since: 28 Apr 2014)


Damn :O

posted on 14 Feb 2016, 12:35 4

4. bur60 (Posts: 832; Member since: 07 Jul 2014)


Like always. High profit margins per phone. The question is how long they can keep this up.

posted on 14 Feb 2016, 12:39

6. Unordinary (Posts: 1160; Member since: 04 Nov 2015)


Just as long as cheap $16 Android phones keep selling :)

posted on 14 Feb 2016, 13:47 5

18. tedkord (Posts: 10220; Member since: 17 Jun 2009)


I couldn't care less about those phones. I just want access to best in class phones like the Note 5. And it's always good to have mid rangers that are nearly as good.

It benefits everyone when there are so many great choices, like today.

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