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

FEATURED VIDEO

98 Comments

1. darkkjedii

Posts: 30967; Member since: Feb 05, 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.

3. Well-Manicured-Man

Posts: 673; Member since: Jun 16, 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.

5. darkkjedii

Posts: 30967; Member since: Feb 05, 2011

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

78. Mxyzptlk unregistered

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

86. sgodsell

Posts: 7212; Member since: Mar 16, 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.

8. Finalflash

Posts: 4063; Member since: Jul 23, 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.

14. Bm888

Posts: 517; Member since: Jul 06, 2015

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

32. another1

Posts: 157; Member since: Dec 25, 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???

73. S.R.K.

Posts: 678; Member since: Feb 11, 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.

79. Mxyzptlk unregistered

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.

52. French_Toast

Posts: 98; Member since: Sep 02, 2015

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

81. Diezparda

Posts: 941; Member since: Oct 23, 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.

7. Finalflash

Posts: 4063; Member since: Jul 23, 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.

11. UglyFrank

Posts: 2193; Member since: Jan 23, 2014

No truer words have been spoken. +1

31. SamsungPhanboy

Posts: 765; Member since: Mar 31, 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.

43. NoToFanboys

Posts: 3231; Member since: Oct 03, 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

54. French_Toast

Posts: 98; Member since: Sep 02, 2015

ISheep are blind to reality

57. darkkjedii

Posts: 30967; Member since: Feb 05, 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^^^^

60. NoToFanboys

Posts: 3231; Member since: Oct 03, 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.

71. darkkjedii

Posts: 30967; Member since: Feb 05, 2011

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

80. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

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

82. darkkjedii

Posts: 30967; Member since: Feb 05, 2011

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

61. French_Toast

Posts: 98; Member since: Sep 02, 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.

56. darkkjedii

Posts: 30967; Member since: Feb 05, 2011

Damn good post dude. +1 no +10

63. S.R.K.

Posts: 678; Member since: Feb 11, 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.

64. S.R.K.

Posts: 678; Member since: Feb 11, 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.”

65. ibend

Posts: 6747; Member since: Sep 30, 2014

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

74. Ninetysix

Posts: 2962; Member since: Oct 08, 2012

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

90. tedkord

Posts: 17311; Member since: Jun 17, 2009

And Apple uses PCs. So what?

95. Ninetysix

Posts: 2962; Member since: Oct 08, 2012

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

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.