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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: 22153; 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: 345; 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: 22153; 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: 14309; 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: 3900; 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: 3227; 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: 513; 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: 14309; 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: 85; 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: 874; 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: 3227; 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: 1735; 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: 1966; 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: 85; Member since: 02 Sep 2015)


ISheep are blind to reality

posted on 14 Feb 2016, 18:14 5

57. darkkjedii (Posts: 22153; 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: 1966; 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: 22153; 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: 1966; 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: 22153; 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: 85; 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: 22153; 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: 5133; 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: 2461; 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: 12313; Member since: 17 Jun 2009)


And Apple uses PCs. So what?

posted on 15 Feb 2016, 08:31 1

95. Ninetysix (Posts: 2461; Member since: 08 Oct 2012)


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

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