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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: 23650; 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: 370; 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: 23650; 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, 12:42 39

7. Finalflash (Posts: 3435; 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, 12:45 5

8. Finalflash (Posts: 3435; 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, 13:08 1

11. UglyFrank (Posts: 1887; Member since: 23 Jan 2014)

No truer words have been spoken. +1

posted on 14 Feb 2016, 13:23 11

14. Bm888 (Posts: 516; 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, 13:29 8

15. rd_nest (Posts: 1654; 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, 14:08 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, 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, 14:37 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, 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, 14:46 1

33. Awalker (Posts: 1657; 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, 14:48 4

34. Finalflash (Posts: 3435; 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, 15:04 4

36. shahrooz (Posts: 784; 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: 557; 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 14 Feb 2016, 16:41 4

43. NoToFanboys (Posts: 2658; 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, 17:00 1

45. xondk (Posts: 1904; 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, 17:15 1

46. xfire99 (Posts: 923; 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, 17:28 1

48. SuperMaoriBro (Posts: 532; 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, 18:01 1

52. French_Toast (Posts: 86; 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, 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, 18:06 2

54. French_Toast (Posts: 86; Member since: 02 Sep 2015)

ISheep are blind to reality

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, 18:08 1

56. darkkjedii (Posts: 23650; Member since: 05 Feb 2011)

Damn good post dude. +1 no +10

posted on 14 Feb 2016, 18:14 5

57. darkkjedii (Posts: 23650; 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^^^^

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