It is no secret that Apple’s iPhones are hot sellers. In fact last we heard, Apple’s market share in the US smartphone market was at 43.5%, putting them head and shoulders above the competition, which is why it does not really come as a surprise to learn that apparently in terms of the smartphone industry’s profits, Apple is said to be raking in about 92% of it.
This is according to an estimation by Canaccord Genuity managing director Mike Walkley. According to their estimates, about 1,000 companies in the world make smartphones, but yet it seems that somehow Apple manages to take home about 92% of those profits. As for potential rivals such as Samsung, Walkley has estimated that the South Korean firm only takes home about 15%.
Now it seems that both Apple and Samsung are able to account for more than 100% of the industry’s profits simply because there are some companies who did not make any profits at all, and some who actually lost money. In some ways this doesn’t really come as a surprise since in terms of premium smartphones, there aren’t as many brands out there, at least not many who price their products on the same level as Apple and Samsung.
There are, however, many brands who are more than happy to compete purely on price, like Huawei, ZTE, Oppo, Xiaomi, and other China-based brands who typically aim to attract customers on a budget. That being said, this is working out for some of them, such as Xiaomi who has since managed to become the third largest smartphone manufacturer in the world.
Filed in . Read more about iPhone.