77 cents of every dollar of profit in the mobile industry went into Apple's vault during Q2

77 cents of every dollar of profit in the mobile industry went into Apple's vault during Q2
Raymond James analyst Tavis McCourt has published a new study that shows that Apple received a whopping 77% of the profits in the mobile industry during the second quarter. To prove how much higher the profit margins are for the Cupertino based firm than the rest of the industry, those profits were accomplished with only 43% of Q2 industry revenue.

In terms of units, Apple shipped just 6% of smartphones and tablets in the second quarter and yet wound up with the lion's share of revenue and profits. And this comes during a period of time when Apple iPhone sales are usually not running at peak performance with the next iteration of the device on the way. And McCourt points out that while Samsung sold twice as many smartphones as Apple did in the second period, it really doesn't matter because Apple took such a huge share of profits.

As McCourt noted, HP and Dell sell a lot more PCs than Apple sells Macs, but the profits are what counts. So the analyst says the same thing applies with Samsung and Apple's mobile devices. "Ultimately, profits are the feedstock of innovation;" says McCourt, "and innovation drives profits."

source: AllThingsD



35. Seannyc

Posts: 59; Member since: Jul 21, 2012

My 2 cent : Andriod and apple war can go on 4ever but you have to admit apple gotta be doing something right if apple itself makes more money than all the other phone competitors combine. Im currently using an andriod phone, however Im getting myself the iphone 5 when it release. I just never felt special when I had andriod, nor can I find as many accessories as iphone. Since first year my phone is broken but no one can fix it. I really feel andriod lacks in customer support and updates

42. frydaexiii

Posts: 1476; Member since: Dec 01, 2011

So you buy a phone just to feel special? Ok, good thing you're going over to the iCraps side. Android has no place for people who uses their phone as a status symbol to feel special (even though all iPhones are the same, I don't see how you can feel special with it, but who knows? iFan logic) & and blames the OEMs when they can't fix their own problems.

45. wsucoug13

Posts: 164; Member since: May 04, 2012

haha this is the dumbest post i have ever seen on here.. go get an iPhone so people can think your cool or whatever. iPhones feel like a dumb little toy after getting my GSIII

46. Savage unregistered

That depends if you've actually used an iPhone before and are familiar with their customer support. Otherwise, how can you know if they'll repair the fragile glass if you've broken it? And it's stupid to buy a phone for the 'feel special' part. There are clothing items and jewellery for that.

29. RapidCat

Posts: 351; Member since: Jun 12, 2012

off topic, now apple accuses samsung for copying icon. thats crazy

40. taco50

Posts: 5506; Member since: Oct 08, 2009

That's real

28. gallitoking

Posts: 4721; Member since: May 17, 2011

Apple has a product that caters to an average users and not geeks ( sorry 98% of people here).. they keep their customer happy, and dont saturate the market with an iphone variant every 2 months... see Apple makes you want their phone.. Android will just give it to you.. nothing wrong with that. just like nothing wrong with the Apple way

30. RapidCat

Posts: 351; Member since: Jun 12, 2012

apple don't care about customer, they only think what they want. unlike other os, they listen to consumer

39. plgladio

Posts: 314; Member since: Dec 05, 2011

We (as per you 98%) wont say anything wrong about Apple if they are not sueing other companies. They didn't invent any technology, all they did is bought and marketed and made popular. Ex: You study in a school and become a very great business-man in the world, that's doesn't mean you have to pay to the school every month because you studied there. Nowadays all the big gaints are buying small companies only to sue others, that's not fair for business.

27. wsucoug13

Posts: 164; Member since: May 04, 2012

This is embarrassing is your and iPhone user. Just completely getting f**ked up the ass!

25. Gaurav008

Posts: 328; Member since: Jul 20, 2012

and they said they are not interested in making profits....*sigh*...

24. Gusto

Posts: 28; Member since: Mar 20, 2012

Okay, from this news we can infer only one thing, that Apple's products are overpriced.

23. kanagadeepan

Posts: 1291; Member since: Jan 24, 2012

And they will again say "WE ARE NOT AFTER MONEY".... Greedy DEVILS....

22. jove39

Posts: 2153; Member since: Oct 18, 2011

And Apple is still greedy :(

18. wendygarett unregistered

Innovation drive profits? I though profits drives innovation...

13. mas11

Posts: 1034; Member since: Mar 30, 2012

Man Apple really knows how to screw ppl

34. taco50

Posts: 5506; Member since: Oct 08, 2009

They know how to run a business. No one is forced to buy Apple products so no one is getting screwed.

11. windowsRocks

Posts: 155; Member since: Oct 28, 2011

This is way a closed system is always better for both developer & company

8. Tre-Nitty

Posts: 470; Member since: Nov 16, 2010

Apple just keeps on rolling and raking in the dough. Hard to argue with their place in the industry. I say just give them their props.

7. smartphone

Posts: 160; Member since: Oct 21, 2011

Even if they got 99% of all profit their greed can't be fulfilled.

3. hitmantb

Posts: 79; Member since: Jul 26, 2012

I laugh at comparisons to Nokia and Rim of the past, these companies at their peak, were never even close to the #1 most valuable company in the world, and they never had 100+ billion in cash reserves, nor dominated industry profit like Apple has. And the only reason Android is gaining market share is because of low end units. They get crushed by Apple in premium space. As good Samsung was in Q2, they sold 50 million smartphones, 10 million of them was GS3 variants, 5 million was GS2 + Note variants, all others were low end devices. 70% of Samsung Q2 smartphones were low end! By comparison, Apple sold 26%, and almost all of them (3GS are offered in such limited quantities at this point) are 4S and 4's. And all other Android vendors are non-factor at this moment, because they do not manufacturer their components like Samsung, and do not have the raw muscle of Apple to dominate supply chain. None of them will put up any meaningful fight. The most they can do is drive the price lower (HTC One X already $99, can be bought for $400ish unlocked!) and all Android manufacturers loses. Heck, Microsoft makes more profit from Android than anyone other than Samsung at this time!

4. taco50

Posts: 5506; Member since: Oct 08, 2009

OEM's are actually going to be put out of business by android. They all have the same OS that google gives away for free so they have no way to differentiate their phones. They end up competing on specs and price so they feel pressured to constantly come out with new phones which totally devalues older android phones. It's a vicious cycle and none of them make a profit. Samsung is the only one with a sustainable model and they've done it by basically copying Apple's phone. Meanwhile Apple comes out with one phone a year and rakes in the dough. It's not overpriced if people are buying them in record numbers.

14. matrix_neo

Posts: 334; Member since: Nov 03, 2011

Are you day dreaming itaco50?! It seems you're in dreamland when you write your comments, it's very far far from reality. Pity on you....

16. protozeloz

Posts: 5396; Member since: Sep 16, 2010

do us all a favor, don't give him worth replies

15. plgladio

Posts: 314; Member since: Dec 05, 2011

Have you heard of SENSE, TOUCHWIZ? Take a LG Android phone and a Samsung Android phone, though the menus are same like still they show a difference in their product. The "look and feel" changes. Its not just only the hardware need to be changed, we are in world were technology speaks rather than color and shape.

17. protozeloz

Posts: 5396; Member since: Sep 16, 2010

again do not waist your time, its what he wants.... don't you see him hating on Samsung

26. plgladio

Posts: 314; Member since: Dec 05, 2011

I agree

32. taco50

Posts: 5506; Member since: Oct 08, 2009

You know what they say: You can put lipstick on a pig, but...

38. plgladio

Posts: 314; Member since: Dec 05, 2011

Oh! Pig is owned by Apple? What is Apple problem if Samsung or HTC or LG put lipstick to Pig or Ass, why Apple is interested to know or need that money (which Samsung got from putting lipstick to pig)? That much cheap Apple is? If so ask them to come and be my assistant I'll pay them few cents a month..

19. frydaexiii

Posts: 1476; Member since: Dec 01, 2011

It is overpriced when it doesn't have the hardware or can't even do a quarter of what other phones of the same price range can & have.

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