Apple now rakes in 95% of the smartphone industry profits

Apple now rakes in 95% of the smartphone industry profits
According to the latest report from Canaccord Genuity, Apple grabbed a whopping 94 percent of the smartphone industry profits during Q3 2015. Even for Apple, a smartphone maker with a longstanding firm grip on the industry profits, this is a new record. A year ago, Apple raked in 85 percent of the profits in the smartphone market.

Apple's profits are even more impressive given that the company is only responsible for about 15% of the global smartphone sales. However, with the price of the average iPhone going up from $620 back in 2014 to $670 during Q3 2015, and this at a 37 percent operating margin, Apple doesn't need to win the volume game in order to dominate the profit charts.

Samsung, the world's largest smartphone maker by global sales, only has an average sales price of $180. As such, the company is much more dependent on total volume to generate money. According to this new report from Canaccord Genuity, Samsung brought in 11% of the total profits in the industry, down from 42 percent back in its glory days of 2013. At the time, the company had a 31.9% slice of the global smartphone sales, but the most recent reports see Samsung as controlling about a smaller 22% slice in the present.

Other smartphone makers, including big names such as Microsoft, BlackBerry, Lenovo-owned Motorola, Sony, LG, or HTC either didn't make too much profit or reported losses during the quarter. The losses reported by these companies are the reason why the profit percentages add up to more than 100%.

Looking forward, it remains to be seen if Apple will be able to maintain the momentum with the iPhone 6s series. Although the new iPhones topped the launch-day sales record set by the previous generation, some reports claim that customer interest has cooled off in the following weeks.

source: Canaccord Genuity via Apple Insider



1. meanestgenius

Posts: 22805; Member since: May 28, 2014

WOW...that's INSANE. Gotta give props where props are due. Congrats, Apple!

4. zeeBomb

Posts: 2318; Member since: Aug 14, 2014

Yeah you gotta han it to them. Apple's sales is just unfathomable.

5. Wolf_Blitza

Posts: 64; Member since: May 30, 2014

makes you wonder though if the consumer is paying too much for their products

9. meanestgenius

Posts: 22805; Member since: May 28, 2014

Indeed. I've wondered that for quite some time now.

10. sgodsell

Posts: 7617; Member since: Mar 16, 2013

You have to ask that question and wonder if they Make too much on their products? It doesn't take a rocket scientist to figure that one out. Of course Apple milks their customers. That's a given. Does anyone here believe for one moment that a 42 mm Apple watch costs $599 with a rubberized band? Especially when the aluminum sports versions cost Apple $85, and that included all the packaging as well as the watch and charger. Even the iPhone 6s with its mid-range display cost Apple no more than $200. Yet Apple changes $650. This goes for all Apple products.

108. FReDcc

Posts: 73; Member since: Jun 11, 2015

Charging highrer price for anything they sell won't work in any world but Charging higher price for anything they sell which satisfy their customer works very well.

112. Acer_Predator unregistered

well apple abusing its customers and they love it so there is no help unfortunately .. so many stupid ppl in the world naively thinks that when something is expensive it is best..

12. darkkjedii

Posts: 31764; Member since: Feb 05, 2011



Posts: 35; Member since: Nov 15, 2015

It’s been fun watching Apple rail against the evil might of Microsoft, bemoan the ignorance of the masses who failed to comprehend the true majesty of Apple and/or NeXT’s innovative technology, etc. Then of course Apple becomes one the most successful tech companies on the planet and become more Orwellian than the Evil Overlord their first advert warned against. I won’t ever say Jobs and Co. aren’t just FABULOUS at seeing and setting trends. But if you’re too friggin’ dumb to realize they’re just the next in a long line of hucksters from snake oil .

68. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

Whoa, I have nothing against normal Apple users, but Apple extremist/worshipers/preachers like you are totally nuts.


Posts: 35; Member since: Nov 15, 2015

Star Trek Voyager had a lot of iPads at the time. What do you think a pad(tablet or whatever name you want to call it) should look like? Most people will get a frame with glass in the middle how is that not common sense? And according to design trends today and since at least 2000 everything should have rounded corners. Doubt? The place Apple succeed where others failed was the usability interface, that was what made it useful, want to see the difference try using a LG Prada the old models and see the difference in usability although it came out before the iPhone and was a huge success, it was nowhere near the usability of the first iPhone. Want to see a true competitor to Apple? Look at the interface of the Windows Mobile Mango apparently is not only sexy but is also easy to use, but probably will fail, Microsoft doesn't have fans anymore, they stopped caring about people a long time ago and even though they are trying to get people back to like them I'm not sure at this point in time it will make a difference for this one great product of theirs, because it is also pricey for manufacturers. What made Apple good was the design and usability combo. It was cute, but nothing people didn't saw before specially in Asia, but it was also crammed with useful things that others thought people didn't care about it in a phone and that was innovative. The iPhone is the first true "usable" pocket computer anybody can have and of course marketing, Asian manufacturers were arrogant and didn't care to cater to Americans at the time because they thought Americans and Europeans didn't care about phones. So yes, a black rounded corner frame with a piece of glass in the middle is just common sense from a design point of view and it has been so for a long time, there are many picture frames with the exact shape the iPhone or the iPad have, but what is inside that is what makes all the difference and you couple that with great showmanship and you get success, but Apple did have something that others don't have and that is a fan base, those that will defend it no matter what it does to them Apple can do no wrong, they are the ones that helped Apple spread the word of a good product to others, they were the ones doing personal demonstrations to colleagues at work and at home making believer out of the non-believers, something the PRADA didn't had, something the PS3 is loosing. Maybe the best way to put it is to say. "You just need to listen to the people who buy", transform them into fans and you will succeed, threat them like crap and they will leave you alone. Jobs mask in public was a very different one from the one he used in private, he didn't show his anger in public, that is poison it kills the goodwill, it kills your market he knew that and he was very careful even when talking to his detractors. Beauty + hardware/software control + usability + fans = success. There is where Apple

99. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

Too long, didn't read.

131. vladone885

Posts: 9; Member since: Jun 05, 2015

Apple is a fashion statement, an "look i have money" recognaizable item and a booble, and like any booble in history it will burst when people are going to realize that they are paying more then it deserves..and they are ;)

67. Mxyzptlk unregistered

Actually you can get some iPhone models for excellent prices right now. iPhones retain their value far better than most Android models. So you aren't getting some cheap junk that loses value or becomes worthless after awhile.

132. Scott93274

Posts: 6042; Member since: Aug 06, 2013

They do retain value more than other devices, but typically it's not enough to offset the initial difference in MSRP. Also, Say you were to buy a Nexus phone, you would be able to sign up for Google Fi and potentially save the equivalent of the full cost of your phone over the course of a year. My point being: if value retention is your reasoning for going with the iPhone for the sake of saving a couple hundred dollars, there're better options out there for saving even more money with a high end device that's not Apple brand. Yes, it is limited to only the last three Nexus devices, but Google's own words are "Early Access Program", so it's apparent that they have plans to move beyond the invite system and the Nexus device only restrictions.

146. xondk

Posts: 1904; Member since: Mar 25, 2014

I don't think that's even a question at this point, Apple is most definitely earning a lot more per phone then others, so yes they can gain a lot more profit, but you know yeah, I think a lot have said a lot about that over the years, but Apple is simply praised for it. To me there's some options. Apple is able to get better deals and able to create their product significantly cheaper then other people without cutting significant corners in terms of materials and treatment of workers. Apple is able is using less quality components, and they treat their workers worse, to lower the price of their product. Now considering that giant (and yes they are a giant) like Samsung, that creates its own components memory and whatnot apparently cannot create their phones as cheaply as Apple (their profit margin per product is significantly lower) even though they create their own components and Apple has to buy them, at least to me, it seems to be the second thing that makes it possible for Apple to profit as much as they do per product, and when they then sell as well as they do, yup, they earn a ton of money then.

13. darkkjedii

Posts: 31764; Member since: Feb 05, 2011

Apple gets its money. I don't see that trend continuing at that level for long though.

15. meanestgenius

Posts: 22805; Member since: May 28, 2014

I agree with you, darkk. There is only so long that Apple will be able to sustain such incredible profits. Smartphones are now beginning to offer flagship experiences at midrange prices. The buying public will soon have a user experience from other platforms comparable to what Apple offers, if not superior to it.

16. darkkjedii

Posts: 31764; Member since: Feb 05, 2011

Apple's ace, is in the background processes like, syncing, backups etc. I love their overall one stop for all experience, and it creates customer comfort. They know their business, and people flock to it. I'm slowly drifting, but I'll never leave the platform completely.

30. meanestgenius

Posts: 22805; Member since: May 28, 2014

I agree. For me, I've actually drifted TOWARDS Apple because of what you mentioned, as because of Apples vast ecosystem. I'll never stop rocking a BlackBerry though, lol. That will always be my daily driver. But I will now also have either an iPhone for a secondary device, or an iPad as one of my tablet choices.

52. darkkjedii

Posts: 31764; Member since: Feb 05, 2011

Yeah, I'm keeping an iPhone/iPad. N5 for the heavy hitting now.

74. Mxyzptlk unregistered

I agree bro. I've branched out again to the Android front via the Moto X as my personal daily driver. I still keep the iPhone as a business phone and my iPad Air 2 as my tablet fix. I'm always going to be in the Apple ecosystem in some form. They do need to start making some more under the hood fixes for iOS.

83. EC112987

Posts: 1216; Member since: Nov 10, 2014

Moto x wow in proud of you lol

127. darkkjedii

Posts: 31764; Member since: Feb 05, 2011

Yeah, and it's not an I'm done with Apple thing. I just think the Note is more of what I want now as my daily driver, it has its quirks, but it's a beast. Still have my Air 2, and will upgrade it to the pro eventually, and of course my iPhone. Nothing wrong with branching out yo +1

78. Johnnokia

Posts: 1158; Member since: May 27, 2012

The problem is not related to the smartphone prices. The problem is no one could come with a revolutionary operating system that can make iOS users shift their interest. Android is great. I love it more than iOS, but it doesn't seem this is the case with millions of Apple fans. So, if all other flagship phones priced much lower than the iPhone, this will not make Apple fans leaving their platform. This will only works with other Android OEMs.

129. j2001m

Posts: 3061; Member since: Apr 28, 2014

They locked in to iOS that's why

36. Scott93274

Posts: 6042; Member since: Aug 06, 2013

Oh No!!! And BobbyBuster is limited and unable to post about it. LOL, that guy is a tool.

37. ojdidit84

Posts: 462; Member since: Jul 16, 2011

Hey... They make products and mark them up by 400-500% and people will continue to shell out the money for it because it has that logo on the back of it. And here in the States where people don't really see the full cost of these devices because of subsidies really helps them fly out of the door here.

118. aba71983

Posts: 807; Member since: Jul 24, 2014

FYI... It because Apple have the Logo at the back and people buying it. That's pathetic idea or are you blind because you can't see it. Every phones have there own Logo at the back or front in the phone. Look at yourself and you may see it.

145. ojdidit84

Posts: 462; Member since: Jul 16, 2011

Clearly went over your head...

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