Apple took 88.7% of smartphone operating profits in Q4, Android accounted for record-low 11.3%

Apple took 88.7% of smartphone operating profits in Q4, Android accounted for record-low 11.3%
A recent report produced by Canaccord credited Apple with 93% of the smartphone industry's operating profits during the fourth quarter. On Thursday, Strategy Analytics released its stats for the same three month period. While the report said Apple was responsible for an amazing 88.7% of the industry's operating profits, it also said that Android's share hit a record low 11.3%. In dollars, Apple had operating profits of $18.8 billion for the period compared to Android manufacturers' $2.4 billion.

This is a pretty big jump from the previous year. During the third quarter of 2013, Apple's operating profits equaled 70.5% of the smartphone industry's total. Android accounted for 29.5% of the operating profits amassed by smartphone manufacturers during that three month period. Looking at the dollars involved for the 2013 quarter, Apple reported operating profits due to iPhone sales of $11.4 billion. Android profits amounted to $4.8 billion.

Despite having a larger market share globally than Apple, the latter has been able to produce the lion's share of profits thanks to the higher prices paid for iPhone models. Android smartphone manufacturers in China have been focused on producing low priced models that bring in smaller profits.

Starting with the fourth quarter of 2014, Apple also had the new high-end Apple iPhone 6 Plus phablet in the mix which helped raise Apple's average selling price. For the October-December period last year, Apple sold 74.5 million iPhones and reported an amazing $18.1 billion in profits for the period.


source: iDB

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109 Comments

1. nctx77

Posts: 2540; Member since: Sep 03, 2013

Outstanding! Apple wins! Press start to continue.

5. sgodsell

Posts: 7535; Member since: Mar 16, 2013

So when Apples cost to manufacture an iPhone 6 was reported at $220. Then when Apple sells that same iPhone for a price of up to $1000. I guess everyone is happy with Apple then? Also Apples iPhone revenue brings in 75% of Apples total revenue. Everything else from Apple brings in the remaining 25% (app store, macs, macbooks, tablets, accessories, and more).

45. ankitp

Posts: 138; Member since: Feb 19, 2013

simply people donot sell kidney's for an iphone..well there is reason behind it

50. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

If you think all costs come down to simple manufacturing and nothing else, then please do not open any business. Their support is beyond the competition when compared to apple. I regularly give them a call that they will more than happily take over, htc/Samsung/etc always give pushback and never truly want to talk to the customer when I call on their behalf. Like when Samsung had cord problems for the s5 and note 3's, they were so reluctant to handle anything. Lets not forget that they also build their entire OS from ground up, Android gives them a great base to start off with for free. So while the parts, the silicon/metal/etc costs around 220, and that is all speculative, is the bare parts it accounts for nothing else. And if you think any company doesn't mark up 3-5x fold or more, here is a bridge, this one isn't even for sale, its free.

65. ankitp

Posts: 138; Member since: Feb 19, 2013

ya bro,i understand you..even their app store support is amazing..i recently get full refund for an app which did not help on solving my problem..they care more about customer and user experience

68. wando77

Posts: 1168; Member since: Aug 23, 2012

You're holding it wrong........ put a case on it. Why you are happy for apple to charge 4x more than some of the Chinese phones when the Chinese phones are using much better tech is beyond me. Blind loyalty for a company that doesn't give two shakes about you. You must be a pretty smart chap

86. Pattyface

Posts: 1658; Member since: Aug 20, 2014

You also must be a smart chap because no where did he say HE owns an apple product but that he calls on their behalf

89. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

I dont own one, though as a job requirement i actually use both 5c, 5s, 4s, 6 and 6 plus a few hours a day. Once more this is not blind loyalty. This is me calling customer service on a customers behalf and not once have they not said, "Sure thanks for the heads up let me talk to them and they will be taken care of". Not nearly the same as other OEMs. Also the "chinese" phones you speak of, i will let you contemplate why they are so much more inexpensive as well....having their own 3x-5x markup. And if you believe they are selling handsets for pennies profit then blind is something we all are. I actually am called a MS fanboy here.

63. mrochester

Posts: 1035; Member since: Aug 17, 2014

Well as customers we get the best smartphone on the market, and as a company Apple makes the most money. It's win freaking win.

76. MySchizoBuddy

Posts: 159; Member since: Aug 23, 2011

Samsung cost is $100 yet it sells it for $700.

98. g2a5b0e unregistered

Samsung's cost for making a flagship device is higher than Apple's. Not sure where you got that $100 from, but it couldn't be further from the truth.

10. seven7dust unregistered

A lot of people think Apple is more expensive for some reason. but iPhones have resale value second to none, my friend recently sold her iPhone 5s for 500$ and paid jus 300$ more get a 64 gb iPhone 6. this is why iPhones have the highest customer loyalty and satisfaction, along with the simplicity and Apps of iO.S. last I Checked a s5 costed the same as a iPhone when it came out and doesn't get you the same resale value , no where near that even. and when you take into account the Contract prices , iPhones can be had for 199$ which completely negates the iPhone being expensive argument. there's a reason 75 million people bough a iPhone last quarter , it's actually not that expensive if you take everything into account.

17. darkkjedii

Posts: 31541; Member since: Feb 05, 2011

Most of these fanboys don't think about resale value, and end user experience. they think about specs, and creative bashes to post about Apple on tech sites. +1

25. cheetah2k

Posts: 2294; Member since: Jan 16, 2011

Resale value has been debunked... deal with it paying $1000 for a $50 handset. I envy your unintelligence lol

28. darkkjedii

Posts: 31541; Member since: Feb 05, 2011

No jackas, it hasn't been. You simply don't enjoy it when you sell your cheap ass junk device. Deal with that.

70. wando77

Posts: 1168; Member since: Aug 23, 2012

My note 4 is a far better phone that your iPhone. It beats it in all areas which all the tech sites agree. How does that make the galaxy note 4 a cheap ass junk device? Galaxy note 4 = Better screen, better camera, more ram, more memory (with my 128gb card +32gb built in), better multitasking, better battery etc etc etc

78. darkkjedii

Posts: 31541; Member since: Feb 05, 2011

Yeah yeah yeah, and my dad is stronger than your dad. Go get laid fool.

99. g2a5b0e unregistered

Love it. +1

82. mrochester

Posts: 1035; Member since: Aug 17, 2014

Your Note 4 has one major flaw; it runs Android rathen than iOS. If it ran iOS, it'd definitely be better than the iPhone. But as it doesn't, it isn't.

87. darkkjedii

Posts: 31541; Member since: Feb 05, 2011

BAM!!!

96. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

Enjoy your Note, don't worry about what anyone else is holding. Life is too short to go to war over a simple "phone". Thank God we are discussing religion.

42. engineer-1701d unregistered

it has nothing to do with fanboyism and specs its people that buy Apple phone because of Apple when I see idiots lined up outside of a shoe store or mall to buy a Nike pair of shoes or Jordan pair of shoes for $250 I think let's just end them there's no reason why we should have people like that on the planet same goes for this situation people buy iPhones used at such a high price because they think they're getting a good deal but all that buying is in need nothing else

19. SonyFindOneDroidple

Posts: 865; Member since: May 11, 2013

yah this is the only thing I envy from an iPhone :( the resale value

20. cheetah2k

Posts: 2294; Member since: Jan 16, 2011

Your statement about resale holds very little water especially when most of the high end android phones are already $3-400 cheaper than an equivalent iPhone 6 (eg, in Australia the Sony Z3 retails $519, where as an iPhone 6 16gb is $868 - reference kogan.com.au) Sure they sell for less 2nd hand, but they originally cost way less to begin with.. I recently sold my Sony Z2 which I bought for $600, for $475 - a loss of $125, however my colleague at work sold his iPhone 5S which he originally bought for $890 for only $650. He lost more on the apple iPhone, which then cost him another $868 to buy, but the Z3 cost me only $519. iPhone users... not very smart when cant do basic math.

27. WakaFlakaD

Posts: 576; Member since: Apr 30, 2011

When it comes with the 64GB iPhone, which is definitely not as popular as 16GB, sellers get lowball all the time. I mean, not many people at all would take advantage of those 64GB and would only take the 64GB if it's sitting at an attractive price. So from 890 to 650, I am not surprise. Also, who cares about what the seller got it for? No one cares about the MSRP, only selling price matters. Besides, who wants an iPhone 5s when there's already iPhone 6 on the market @_@!! In my point of view, he got lucky to sell that 5s at $650

43. engineer-1701d unregistered

just like me I voted Audi a6 Quattro used yesterday because my sister crashed the car I gave her a year ago so therefore I give her my current car and now I have an outie I think less because I'm getting rid of one car and now I get another one but with a smaller increase in price

29. seven7dust unregistered

And droid lovers are trolls who can't accept basic facts , and need to insult people at every turn instead of having a healthy converation , cause thats what your good for !!! won't stoop to your level. at the end of the day even the best case scenario ,how much money are you going to save going android , not even 100$, and thats not even a worthy argument sorry. what O.S was the z2 running when you sold it, never mind i know the answer to that question LOL!. there's reason why Sony is getting out the phone business

95. refillable

Posts: 1071; Member since: Mar 10, 2014

I'd agree with you with the fact that a lot of android fans are sometimes getting out of hands with insults, but you are doing the same. Resale value is not very different according to my experience. Some 5s' (second hand) can be seen hovering at $500 (32GB) and S5s can be seen hovering at $400 (I believe they should be the same age). While the new price of 5S' can be seen at $600 (16GB) while S5 can be seen at $550. Barely any advantage in terms of resell value TBH (at least here, but should be similar in other countries though, mind that 32GB 5S' can be as expensive as $700). So yes... Do not insult each other with ignorant statements!

32. SonyFindOneDroidple

Posts: 865; Member since: May 11, 2013

Did both of you use the phones at the same period of time?

40. nodes

Posts: 1163; Member since: Mar 06, 2014

Sony flagships don't compare with the bigger dogs, Apple, Samsung, HTC, LG. just look at the screen, even Huawei, Lenovo, Xiaomi, have much better screen quality. Z3 with that big washed-out screen looks like a cheap chinese phone. even the camera is so-so.

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