Resistance is futile: Apple mopped up 90% of mobile industry profits in Q2

The cell phone industry is being quickly commoditized, with faster rollouts, lower prices for ever-improving specs, and a panoply of players - from startups to established brands. Save for Apple. 

The team from Cupertino currently enjoys the lion's share of mobile industry profits, and we mean lion's share - Bloomberg calculates that Apple is now soaking in more than 90% from the profit pie in the business, followed by Samsung, with the rest left to scramble over a measly percent or two, or lose money outright. 

Looking at this ugly picture, it's not hard to fathom why a company like Sony, which just outed the excellent Z5-series trio of smartphones, is contemplating leaving the industry and moving on to greener pastures. In fact, only one in three smartphone sold is Apple or Samsung, but together those two sweep almost every excess dollar that the market can offer.

Kirt McMaster, the CEO of Cyanogen, has the following to comment on the sad state of profit affairs: "[Phones have] gone from being technological devices to fast-moving consumer products. It’s like Coke and Pepsi now. That’s the war these companies are fighting. It’s not a sexy business anymore.” 

Well, we are sure Apple still thinks it's a sexy business, though this market saturation and commoditization might mean less willingness to change phones every so often. Perhaps that's why he company is introducing upgrade programs and other tools to ensure you'd always want to get the latest and greatest.

source: Bloomberg



1. xdza1979

Posts: 296; Member since: Aug 08, 2015

This is just showing how much Apple rape their customers PA. show the sales to elaborate.

3. quakan

Posts: 1419; Member since: Mar 02, 2011

Customers are satisfied with what Apple has to offer and are willing to pay the price year after year.

9. xdza1979

Posts: 296; Member since: Aug 08, 2015

I deeply susprct its satisfaction rather than hype and culture, just watch how many hoe on social media like snapchat and Instagram uses Iphone or coold kids and hipster, its your ticket to getting acceptance in this kind of societie, as like what some people already mentioned before me... This sadly kills innovation and encourage laziness and overpricing.. Apple is becoming the evil dictator in their classic add..

46. marorun

Posts: 5029; Member since: Mar 30, 2015

Apple is only one making iOS device. so no competition they can do what they want. Android OEM keep on fighting wich each other so consummer get more for there money. Sadly many ppl are blind to this truth and live in there golden jail.

59. SamsungPhanboy

Posts: 765; Member since: Mar 31, 2015

Your logic is ridiculously flawed. So because Apple was smart enough to develop their own mobile operating system, they should not be credited for their success since other phone manufacturers are relying on Android? You don't realize it, but in reality, you complimented Apple. So SADLY, people like you are blinded by the truth, even when it comes out your mouth. Give Apple credit where it's due and move along.

140. Diezparda

Posts: 941; Member since: Oct 23, 2013

Somehow it's true, it's natural if Apple can monopoly iOS because no other manufacturer using it. Nothing wrong if others was relying on Android. Well the rest of his word more like an insult since it's all about people choice.

63. No_Sammy_No_Gimmicks

Posts: 153; Member since: Jun 10, 2015

Samsung has Tizen?

15. SamsungPhanboy

Posts: 765; Member since: Mar 31, 2015

It is shocking to me how many people hate on Apple on Phone Arena. The company doing great, its customers are satisfied. I mean, people truly love their iPhones. What the hell is wrong with that? And don't use the stupid "sheep are blinded" argument. The truth is that Apple fans love their iPhones. Let them love em and enjoy your own device. It isn't weird that an excellent product collects nearly all the profits of the industry.

31. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

It's true that there are many Apple hating Fandroids out there, but it is also a fact that their hate is fueled by the equally stupid Apple fanboys, it's the same for both sides really, fanboys are annoying in general, regardless of which side.

34. Shocky unregistered

Premium price for 16GB storage, 1334x750 display, 2GB of RAM, 1715 mAh battery and no wireless charging. Yes, Apple are ripping people off. However it doesn't stop there, it continues long after users buy the iPhone, expensive repairs, although Apple don't like repairs, they try to force replacement phones where possible raping the users even more.

60. SamsungPhanboy

Posts: 765; Member since: Mar 31, 2015

Oh nice, just use the iPhone 6s specs. 1. 16gb of storage is plenty for most people 2. 2gb of RAM is ALL iOS needs. This isn't android. 3. 720p on a 4.7 inch screen is more than adequate 4. Battery life on my iPhone 6 is outstanding. Battery life on the 6s is said to be great by reviewers So, by your logic, Apple is ripping people off because they need less specs to be EFFICIENT????!!!!! How stupid is that LMAOO Also, I love how you leave out Apples industry leading processing chips, great camera, force touch etc, just to prove a point.

86. uggman

Posts: 58; Member since: Feb 01, 2013

12 MP camera with slowmo and 4K!!!!!! And live photos!!!!!! umm How many 4K videos can you make out of 16GB????

87. Shocky unregistered

Apple caught up with the camera, and are behind in CPU performace unless you're a tool and think only single core performance is all that's important. Forcetouch isn't needed, it just adds unnecessary complexity to the interface. Based on GSM results the endurance rating is 10 hours behind the Galaxy S6. It's about the whole package, having a competitive camera and SoC does not make it okay to stay a generaton behing in other areas.

64. No_Sammy_No_Gimmicks

Posts: 153; Member since: Jun 10, 2015

Unfortunately I prefer Apple's strategy of given you a new/refurb phone than trying to repair. I have had my iPhone's still under warranty replaced with new ones and that strategy has ensured that I get the highest possible amount when it comes to selling my phone cos it still looks new and shiny.

146. Shocky unregistered

That's fine if you're under warranty, but when your not it gets very expensive. Apple don't allow 3rd parties access diagnostic software so users are forced to go to Apple for anything that's not obvious, however Apple will NOT repair your device even if the cost of repairing is much lower than buying a replacement. It's messed up, but that's how Apple work. They will squeeze every last penny from their users, if you prefer that approach then you're an idiot.

48. marorun

Posts: 5029; Member since: Mar 30, 2015

I used iphone 3 GS , 4 , 4S and 5 and i loved my iphones and iOS. Since iphone 5S the quality of the product the bug and stability as gone down the drain.. But yeah customer service is as good as ever. I just decided i was tired of buying device from a manufacturer thats only care to make the max profit and only give you enuf for your need. i want more for my money.

69. vliang86

Posts: 337; Member since: Oct 05, 2015

I love your reply there. I agree, Apple fans love their iPhones (disclaimer, I am an Apple fan), and Android fans should enjoy their phones without trying to keep saying Apple Fans pay premium for iPhones that have lower specs. Btw, I use iPhone 6S as my personal phone, Samsung Galaxy S6 as my emulator game phone. I love both:)

142. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Its really very funny coming from you, SamsungPhanboy. You are like the rocket fuel to this Android vs iOS fan war. I use both iOS and Android extensively and the reason i sided with Android is because most of Apple fan argument are purely based on fandom. Android user don't hate iOS, its really the ignorant comments from Apple fan that we dislike. I don't target iOS user, just their trolls.

45. marorun

Posts: 5029; Member since: Mar 30, 2015

Funny we sold half the amount of 6S compared to the 6 and 5S.. But yeah they look like they sell more because they open new market year after year to artificially boost sales.

76. Techist

Posts: 311; Member since: Jan 27, 2015

This is assuming the Bloomberg article is factually accurate. DId anyone even read it? It is a classic case of deception by omission. For example, the article cites in detail the losses by HTC, Microsoft, Lenovo and others, but when it comes to Samsung they just say "Samsung is not really making money in smartphones" with no data whatsoever. Meanwhile, Samsung's mobile division operating profit: Q1 2012: $4.18 Billion Q2 2012: $4.13 Billion Q3 2012: $5.63 Billion Q4 2012: $5.47 Billion Q1 2013: $6.51 Billion Q2 2013: $6.28 Billion Q3 2013: $6.70 Billion Q4 2013: $5.47 Billion Q1 2014: $6.43 Billion And BTW, this is just from their mobile division, excluding their semiconductor, display panel, device solutions, or other consumer electronics. Here's my source: How anybody can say you aren't making money when you are making 4-6 billion dollars per quarter in profit is beyond me. Yes, Samsung has had some profit decline (not losses) since then, but the Bloomberg article conveniently fails to mention that Samsung has turned things around as of the last quarter and is expecting ~79% profit growth. Let's assume that Samsung in it's worst quarter made "only" $3 billion in profit. For Apple to be taking home 90% of the profit, it would mean that they made at least $30 billion in profit in the same quarter. I would be happy to accept the claim if anyone can show me (with reputable sources cited) a single quarter when Apple made that kind of profit (even including ALL of it's products and revenue sources, not just the iPhone). Anyone?

88. hitmantb

Posts: 79; Member since: Jul 26, 2012

6 billion is already Samsung as a whole, not Samsung mobile. Sorry I don't think anyone takes ibtimes seriously for financial news.

91. Techist

Posts: 311; Member since: Jan 27, 2015

This shows how people get brainwashed. If you had bothered to read the International Business Times article, you would have realized they are pulling their figures from Samsung Tomorrow - Samsung Electronics Official Global Blog. Here's the link: That blog clearly shows that the figures I cited are for Samsung Mobile, not Samsung Electronics as a whole. I just cited the International Business Times article because it has a better formatted results table with exactly the same data.

112. hitmantb

Posts: 79; Member since: Jul 26, 2012

That was Q1 2014. Before Apple released large screens which killed Samsung's high end Galaxy sales. Apple profit history in comparison. Look at the gross profit (which is comparable to operating profit). 90% is not far fetched once you factor in losses from MSFT/HTC/Sony's.

141. Techist

Posts: 311; Member since: Jan 27, 2015

Hmm, is that the best you could do? Respond with a link that has Apple's stock price followed by "Page not found Sorry, we don't have any Income Statemen data for Apple. Why not look at some other stuff we have some awesome data on?". Let me help you out. Here's a link with more information:

95. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Samsung as a whole? Samsung LTD which is the parent company posts way more profits. He specifically said Samsung Mobile which is only part of Samsung Electronics, which is only part of Samsung LTD. Here try it this way Samsung LTD > Samsung Electronics > Samsung Mobile.

97. hitmantb

Posts: 79; Member since: Jul 26, 2012

Like I said IBTimes doesn't know what they are doing with financial news. Go to Bloomberg and Reuters to read Samsung earnings, 6 billion is definitely Samsung Electronics which includes chips/TVs/appliances etc.

107. Techist

Posts: 311; Member since: Jan 27, 2015

Since you've picked on the 6 billion figure from my table above, let me give you the breakdown for one of those 6 billion dollar profit quarters: Samsung Electronics Q3 2013 Operating Profits by division: Consumer Electronics (CE): $0.35 billion IT and Mobile Communictions: $6.70 billion Semiconductor: $2.06 billion Display Panel: $0.98 billion Device Solutions: $3.09 billion TOTAL OPERATING PROFITS: $10.16 billion. That's direct from Samsung's official blog:

90. hitmantb

Posts: 79; Member since: Jul 26, 2012

6 billion is already Samsung as a whole, not Samsung mobile. Sorry I don't think anyone takes ibtimes seriously for financial news.

96. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Because they have to try to make it seem American companies can still compete with the Asians and fact is they cant. Walk into any store and you see the Asians have taken over.

83. Doakie

Posts: 2478; Member since: May 06, 2009

People are satisfied with leasing a Mercedes year after year with $500 a month car payments. Satisfaction doesn't equate to intelligence. Stupid is stupid no matter how satisfied you are with your crap.

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