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.