This is demoralizing: Apple scoops up 93% of the mobile industry's profits

This is demoralizing: Apple scoops up 93% of the mobile industry's profits
Apple made about $18 billion last quarter, toppling the largest three-month corporate profit of $16 billion that belonged to the Russian juggernaut Gazprom. How did Apple do it? Well, the iPhone line ASP was $687 for the quarter, marking a $50 increase from last year, due to the fact that Apple now has the iPhone 6 Plus, whose starting price is a Benjamin higher than the breadwinner. 

The average price to make and sell one, however, is about $220, even with the thorough redesign that the iPhones received, so roughly 200% profit on a handset, and Apple sold a record amount, too. As a result, now Apple has about $178 billion in cash to play with, and those can certainly buy you a lot of innovation still to happen.

Exactly how much more profitable is Apple than the other phone brands? Try 93%. Yes, that's the share of mobile industry profits that Apple hauled home (or offshore) in this past quarter, according to research firm Canaccord. They also predict a rapid rise in the iPhones user base in the next three years, here's the full scoop:


Samsung grabbed the lion's share of the remaining 7%, while the rest are either scraping by, or directly in the red. Pretty demoralizing.


source: Barron's

FEATURED VIDEO

142 Comments

1. nctx77

Posts: 2540; Member since: Sep 03, 2013

Let me break that down. Basically this means that most of the android marketshare is cheap phones. Have a nice day!

2. sgodsell

Posts: 7519; Member since: Mar 16, 2013

If you are proud of the fact that Apple is making a ton of money from the ignorant and blind. Then please be happy for them. But to say android's market share is cheap phones. Just proves how ignorant and blind you really are. Even blind camera tests proved that Apple does not have the best camera's in their smart phones. Nor does it even have the fastest processors on the market. But the blind will continue to believe Apple has the best to offer.

4. jellmoo

Posts: 2648; Member since: Oct 31, 2011

Is it really necessary to be condescending to those that prefer the iPhone?

12. Doakie

Posts: 2478; Member since: May 06, 2009

Yup. Be a snob and make stupid comments get stupid comments back at you. iPhone owners don't hold exclusive rights to making stupid generalized totalitarian comments. Sorry bud.

78. jellmoo

Posts: 2648; Member since: Oct 31, 2011

I agree that making a stupid comment will result in a shot back. That's fine. But is it necessary to not just insult the OP, but also a large group of other people based on their buying habits simply because you don't agree with them?

49. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Is it really necessary to be condescending to those that don't?

105. mrochester

Posts: 1034; Member since: Aug 17, 2014

It's the insecure Android crew who think they are better than everyone else.

20. FlyingDutch

Posts: 97; Member since: Jan 30, 2015

By your logic, every software should be free since it costs nothing copying them.

40. rd_nest

Posts: 1656; Member since: Jun 06, 2010

No need to be condescending towards those who buy Apple products. They are already idiots, they need our support.

74. AfterShock

Posts: 4147; Member since: Nov 02, 2012

Lol We need them to spend with OEM that are innovating for a larger footprint then one fruit/vegetable stand can offer or will. When the money is not all controlled by one OEM, we'll all benefit.

93. HansGoneInsane unregistered

It is not the hardware that puts Apple ahead of the competition, it is the software. I tried Android with Sony Xperia Z2 and Z3 compact. From hardware side I could not complain. But from software side, Android lagged the comfortability and the beautiful design of iOS. That is Apple's secret. I think that only Microsoft can challenge Apple since they have the resources so build up a closed Eco System like Apple with high quality software combined with good looking hardware.

97. mrochester

Posts: 1034; Member since: Aug 17, 2014

That's exactly it. Some of the Android hardware is absolutely lovely. But it's just severly gimped because it runs Android.

132. tedkord

Posts: 17453; Member since: Jun 17, 2009

Then why did nearly every tech reviewer rate the Note 4 as better than the iPhone 6+?

139. mrochester

Posts: 1034; Member since: Aug 17, 2014

I don't rate the Note 4 as better than the iPhone 6+.

137. Mutation.X

Posts: 185; Member since: Feb 09, 2015

Pathetic isn't it. A desktop OS platform ruled by a mobile platform Cpu. Lmao. Lag lag laggy. What do you expect.

122. chromoid

Posts: 37; Member since: Oct 03, 2013

But it has the best auto focus that did enable me to catch a lot if pictures really fast with good quality and no blur. Unlike whats in the galaxy s5 which is not as fast and if you move a hair its blurry. The only reason why I can't go with the Iphone is the lack of file management and uploading anything but pictures in the browser but that's due file management.

3. theguy2345

Posts: 1216; Member since: Jun 24, 2014

No, it means apple at this point has a monopoly. Other manufacturers cannot keep going like this. They are all in the red. Those are the ones that innovate and not Apple. Something needs to be done. It will turn into a duopoly with only Samsung with the little they have and Apple

7. jellmoo

Posts: 2648; Member since: Oct 31, 2011

That's not what a monopoly is though. Apple isn't controlling the market, their user base is actually smaller than that of Android. They're simply better at making a profit. That's not to say they don't employ shady business practices, but it still doesn't equate to a monopoly.

8. theguy2345

Posts: 1216; Member since: Jun 24, 2014

It is killing the other manufacturers. If they all die, they will all have a monopoly. You can't operate always in the red

34. mrochester

Posts: 1034; Member since: Aug 17, 2014

These other manufactures need to figure out how to make money then.

73. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Apple makes easy money because A) They charge 4 to 6 times the cost of what it costs them to make a device. $220 to make an iPhone sold for $750 to start. That is just over 3 times their actual cost. I mean what idiot would pay an extra $100 for a device where the hardware is essentially identical to the previous model? Obviously a lot of them. Apple is the only OEM who consistently uses 2 year old hardware in their tablets, phones and computers and gets away with selling them at a premium. While other OEM's use the latest greatest, sell it at less cost because of competition using the same software. Using the same software everywhere vs having your own, takes away the profit because you either have to keep up of be beaten. Apple has IOS. If another OEM had iOS the tables would be far different. Example, imagine iOS on a Samsung device with the same capabilities as a Samsung device has now. You think the iPhone would see the same? I say it wouldn't. Most people who buy an iPhone have no choice but to keep buying them because you are forced to be locked into Apple once you spend so much money because if you try to move you lose everything. Most people know this and a know they are stuck. Am glad I got out early. But I still put more than $3000 into the brand and I have nothing to show for it. With Android, if I get tired of a brand, I move to another and lose nothing on my investment. In fact I get a huge return.

86. ILikeBubbles

Posts: 525; Member since: Jan 17, 2011

Love this.

98. mrochester

Posts: 1034; Member since: Aug 17, 2014

If Apple use the same software as everyone else we would: A) have a far less competitive market. We need more smartphone operating and ecosystems, not less. B) Apple's profits would decline masively as they'd no longer have a competitive advantage. All in all, it's a pretty silly idea.

116. AlikMalix unregistered

You're an idiot. Sorry, but perception of value based on just hardware offering is dumb. Hardware = nothing if you can't utilize it properly. I didn't pay $200 for my iPhone 5s when it came out - I paid $200 for my experience with Apple devices - that's the experience that many are willing to pay for. GET THIS THRUGH YOUR 12 year old HEAD --- if Apple devices were too expensive - no one would buy one. The fact that it sells well regardless of how much it cost manufacturer to make one (which in reality is about the same as any flagship android). iOS is just a better experience for a large number of people - there's no one who's just trapped in any ecosystem proven that millions are switching back and forth among all platforms if they wish. I tried android with S4 - it required extra effort to do what Ive done on iOS easily. File manager was useless, and the benefits of SD cards are diminished by how much slower itbis compared to built in options that Apple offers up to 128gb. Android is the one overpriced if no one is willing to buy it enough to make the company any profit. You really thing your precious HTC, Sony, lg and Samsung is kindly keeping their devices at low/none profit margins? You're delusional. They'd charge you $1000 bucks in an instant if you were willing to pay for it - but no one seems to be willing to. Another thing - Apple makes its own OS and designs their own hardware, hires third party manufacturers (providing some profit for your precious Samsung in the process, you're welcome) Apple also provides free face to face assistance and a largely regarded ecosystem by app developers as well as accessory, automotive and home automation enterprises. ANDROID OEM's just slap some hardware together, install freeware OS from Google, skin it and suck on googles free ecosystem tit that they don't need to worry about maintaining, supporting, expanding. I guess some people recieve value differently, shocker isn't it? To you it's the sum of parts - to others it's experience.

125. XperiaFanZone

Posts: 2280; Member since: Sep 21, 2012

Most of what you just said, made you look like a right nob. It's full of it. Anyone can refute your points easily. Just because you've responded with a shed load doesn't make him wrong. The fact that you called him an idiot just shows how much your feelings were hurt, sparky. But I would disagree with him about Samsung making an iOS device. The iPhone sales wouldn't be noticeably different if that happened, it would be different there were no tech-illiterates.

148. mrej201

Posts: 226; Member since: Feb 04, 2015

You mean a contract pay for it idiot

152. AlikMalix unregistered

Flagship android phones cost just as much as iPhones on contract or offcontract (I was using my own life experience) I buy phones on contract for $200 use them for 2 years and sell them for double or tripple what I paid for it - get another one for $200 and keep the extra cash - the only phone that's easy and quick to unload is an iphone and for top dollar too... What is your problem with that? I was calling you apple haters on what you think value means... it's not the sum of parts - it's how they work. You can pay $200,000 for a Ferrari and enjoy it or you can pay $50,000 for a used Porsche and enjoy it just as much. Some find more value in a Ferrari vs a Porsche - it's not a debatable fact. In mobile world - consumers find more value in an iPhone vs Android flagship because even though they cost the same - iPhone are bought up at exponential rate vs Samsung flagship for example... but you are trying to explain this in your head - and the only thing that comes to your mind is: mindless sheep or lack of choice.... What's stopping Samsung, or HTC from making their own ecosystem like Apple and raking in profits just like apple? I'll tell you - you cant be a winner if you're following someone... Stop trying to justify the lack of overall interest in Android other than flooding the market with free phones and just accept that you need a tweakable gadget vs someone who needs one to work swiftly in real world... It's ok - there's no wrong in both categories...

55. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Samsung isn't operating in the red, neither is HTC or Lenovo. Sony? Maybe!

17. RebelwithoutaClue unregistered

Depends on your definition of the market. When it's smartphones, then no. But looking at iOS devices, then it's a big yes :)

5. mixedfish

Posts: 1563; Member since: Nov 17, 2013

Actually what it means is the profit margins are slim compared to Apple products. Which means you're paying more price premium for what's essentially hot air. But perhaps you value hot air? Good day to you!

* Some comments have been hidden, because they don't meet the discussions rules.

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.