Apple accounted for 91% of smartphone profits last year

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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98 Comments

59. ibend

Posts: 6747; Member since: Sep 30, 2014

"Apple and Samsung combined to take in 105% of global smartphone profits last year" 105%? lol.. (actually there should be no minus in profit share) btw, if they really doing great, please explain how did they end up in red at the end of last year? lol

50. keithtae

Posts: 564; Member since: Mar 25, 2015

Oh alan f alan f, you just can't stop with apple cant you.

30. tedkord

Posts: 17532; Member since: Jun 17, 2009

Actual numbers are Apple about 86.6% of profits, Samsung about 13.4%. Still impressive.

25. kryme

Posts: 470; Member since: Oct 24, 2013

thats some good number apple with only 17% u get 91% profit......

24. oozz009

Posts: 520; Member since: Jun 22, 2015

Damn!! Impressive!!! Apple is like a money machine:D

16. jove39

Posts: 2153; Member since: Oct 18, 2011

In wake of high profit margins...it makes sense for Apple to do some good for consumer as well...like give free 50GB icloud storage. Stop bundling horrible headset with iPhone...and give some decent ones like dual drivers they sell in accessories.

13. tedkord

Posts: 17532; Member since: Jun 17, 2009

For the millionth time, there's no such thing as negative profit. Losses don't count in figuring this out.

12. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

Is like anything else, Apple caters to a specific clientele. Lets use the car manufacture analogy. Yes, Ford produces more vehicles than Ferrari, but their target clientele is different. Yet, in 2013 Ferrari manage to post higher profit gains than Ford, with less vehicle sold. And yes, in both segments/markets you have pretentious people. No surprise here.

17. tedkord

Posts: 17532; Member since: Jun 17, 2009

Comparing a $700 phone to a Ferrari is ridiculous. Cashiers, janitors, part time customer service folks have iPhones. Not that there's anything wrong with those jobs, but none are affording a Ferrari.

42. tedkord

Posts: 17532; Member since: Jun 17, 2009

I should add, neither can I, and I actually make pretty good money.

62. ibend

Posts: 6747; Member since: Sep 30, 2014

his analogy just bad -_- just imagine apple is ford that sell sedan at ferrari price.. they sell alot with huge profit margin meanwhile other manufacturer cant sell that much even with more reasonable price... (oh, and btw those cashiers, janitors, part time customer service, must be on 2-year contract, lol)

72. S.R.K.

Posts: 678; Member since: Feb 11, 2016

I never see regular people flocking designer clothes.

10. LetThereBeLight

Posts: 117; Member since: Nov 20, 2014

This is the company where everything is starts with the user giving their card number...

70. ibend

Posts: 6747; Member since: Sep 30, 2014

its just weird that their sheep become happy everytime apple have huge profit report each year.. that only mean they ripped so hard by apple, so why did they happy knowing they buy overpriced stuff? :-/

9. TyrionLannister unregistered

IPhone is the only apple product which i don't consider class leading. All their other products like ipad, macbook, mac pro etc are simply the best you can get. It's quite surprising that iPhone is by far the most profitable product by Apple. I know this comment isn't directly related to this article but still a related point worth pondering. Coming back to the topic, qualcomm screwed up most flagships. 810 alone caused almost all android flagships to lag , stutter and have bad battery life. Add to that the uninspiring note 5 (basically nothing new other than a big s6) and iPhone virtually had no competition.

22. tedkord

Posts: 17532; Member since: Jun 17, 2009

I agree with everything except the iPad, when you take the Surface Pro series into account.

29. Wiencon

Posts: 2278; Member since: Aug 06, 2014

I'd say surface pro is new type of device, after all even MS calls it a hybrid. iPad is just excellent entertainment device with few professional apps but it doesn't stand a chance against Surface

40. magnanimus

Posts: 566; Member since: Mar 29, 2013

After using the surface for 2 months, I've come to the conclusion its a very different product from the iPad. If you get the surface to replace the iPad as an entertainment tablet then you'll regret your purchase. The surface doesn't last as long, the OS is not touch optimised and little things like waking up from sleep takes about 4 seconds which compared to the iPad is very poor. Not to talk about the standby time. If you have connected standby, you're looking at about a 10% drain in battery every 30 minutes. For comparison sake, connected standby for the iPad drains about 1% every hour. Although if you get the surface to act as more of a laptop than tablet, then its a killer productivity tool. Then, things like optimised for touch, connected standby or waking up from sleep don't matter too much. I'd strongly recommend the surface to people who want to get work done but unfortunately these people don't make up the majority of the market. Hence why iPads will probably continue to sell more.

41. tedkord

Posts: 17532; Member since: Jun 17, 2009

Since Apple sells kb attachments, I'd say comparing them is fair. The Surface Pro is just far more powerful. Yes, the battery will die faster, that's the price of the power.

44. magnanimus

Posts: 566; Member since: Mar 29, 2013

But would you get your child or parents a surface? They can manage to use it but they would prefer an iPad to it. The surface is not a very good entertainment device which is what the iPad is. The surface is a productivity tool, a space the iPad cannot compete (even if keyboards are being sold for it and it has productivity apps) and the iPad is an entertainment tablet, a space the surface cannot compete (even if it has apps like netflix and a good screen) so I say these products are very different.

47. tedkord

Posts: 17532; Member since: Jun 17, 2009

I wouldn't get them either, I've never seen the point of tablets. For the price of an iPad, I can get a much more powerful and flexible laptop. I say the products are very much the same.

49. magnanimus

Posts: 566; Member since: Mar 29, 2013

You could use the same argument that for the price of that laptop, you can get a much powerful PC. Some people unlike you value convenience and I could bet a child or an elderly person would wanna watch movies or play games on an iPad rather than a laptop. And for these people, an iPad would be better than a surface. Each tablet was made for different purposes in mind (even tho they're marketed to be able to do everything) so they cant be compared. But you can compare a surface and an iPad pro but not a surface and an iPad.

51. tedkord

Posts: 17532; Member since: Jun 17, 2009

A PC isn't portable. Different animal. A laptop is, just like a tablet. Since you can run any X86 program on the Surface Pro, yes, you can watch any video our play any game on it easily. You can compare any tablet, but even in the case of the iPad Pro, the Surface Pro wins.

84. TyrionLannister unregistered

You do realise that surface pro and ipad are not competing products. Ipad is way smaller and cheaper, not to mention portable. Ipad pro is different case though. In short, comparing a 9.7" and a 12+" tablet is stupid.

89. magnanimus

Posts: 566; Member since: Mar 29, 2013

That's what I spent 5 comments trying to explain. He's not very open to reasoning

91. tedkord

Posts: 17532; Member since: Jun 17, 2009

I am open to reasoning, but it needs to be reasonable. You're trying to start distinctions where there aren't any. We're talking about the best tablet. The iPad is a tablet. The Surface Pro is a tablet. Yes, they have differing strengths and weaknesses. Yes, someone shopping for a Surface Pro isn't going to consider an iPad. But the fact remains, both are tablets, and one is markedly more powerful and flexible.

92. TyrionLannister unregistered

I don't think you are. Let me get my reasoning on device categories: 4-4.7" compact phones 4.71-5.2" - normal sized phones 5.21 - 6.99" - phablets 7 - 8.9" - small tablets 8.91 - 10.99" - normal tablets 11"+ tablets - productivity tablets, hybrids or laptop replacements. You can't compare a 1200$+ 12 inch tablet to a 500$ 9.7" one. They don't belong to same category. There is no best tablet as there is no perfect size. I would prefer an iPad for portability and a laptop for serious work as it suits my workflow. For a person who needs only one device would prefer a surface pro. i5 256 GB. Surface pro 4 costs 1810$ here. Add 186$ for keyboard and it's a solid 2000$. In comparison, I have a 600$ iPad Air 2(64 GB) and a proper laptop which is 3-4x more powerful than surface pro 4 for 1100$. I spent less than buying a pro 4 and got 2 devices. iPad beats surface in portability and laptop destroys surface in real work condition. Also, it will be a real pain to install Linux on surface. All I want to say is there is no best tablet. Yes, surface pro 4 destroys iPad pro. But air 2 is still awesome in 10" tablet class.

93. magnanimus

Posts: 566; Member since: Mar 29, 2013

There was a time a 5 inch phone was called a tablet. That doesn't mean we should compare that to today's tablets. The new 18.4inch Samsung device is also a tablet, didn't mean it can be compared to an iPad. These are 2 distinct devices (iPad and surface) even tho they're both tablets, just as the s6 and note 5 are 2 distinct devices even tho they're both phones.

28. tedkord

Posts: 17532; Member since: Jun 17, 2009

Also gotta disagree with the Note 5 comment. By far the best phone on the market, in a class by itself.

38. Xperia14

Posts: 1208; Member since: Sep 01, 2015

Z5 has better battery life than the GS6/ Note 5. And it's even faster with multitasking and has a better signal. Boot up is very slow though. 'Source':https://www.youtube.com/watch?v=yxtAZVTZm3w

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