“Apple captured 87% of smartphone industry profits in the fourth quarter, despite accounting for only about 18% of total units sold in the period, a Wall Street firm estimated Wednesday,” Patrick Seitz reports for Investor’s Business Daily. “Apple’s profit margins are the envy of the industry, thanks to premium handsets like the iPhone X and iPhone 8 series, according to Canaccord Genuity. Apple’s share of smartphone profits increased from 72% in the September quarter, it said.”

We believe strong sales and mix of the iPhone X will sustain strong gross margin dollars (for Apple) given the high price points and likely improving manufacturing efficiencies,. Apple continues to grow its leading market share of the premium-tier smartphone market, with double-digit growth of its installed base during the (fourth) quarter, and believe the iPhone installed base exceeded 635 million exiting calendar 2017. — Canaccord analyst T. Michael Walkley

Seitz reports, “Samsung came in second in smartphone operating profits with 10% of total industry profits [on 18.2% unit share].”

Read more in the full article here.

MacDailyNews Take:

Little Mikey had a lemonade stand. Okay, it was a kiosk. He sold 100 (8 oz.) cups yesterday for 10-cents each. He spent 11-cents per cup for artificial lemon flavoring, corn syrup, and the paper cups. He used tap water because it was free. Threw it all together in a big plastic pail. He’s out a buck for all of his trouble. Boy, that was a lot of work for less than nothing!

Around the block, little Steve runs a lemonade stand, too. It’s all blonde wood and very clean. He sold 50 (24 oz.) glasses yesterday for 50-cents each. He spent 20-cents per glass on fresh-squeezed lemons, pure cane sugar, spring water (mixed with the utmost care), and some very nice glassware (he buys in bulk and gets a good price). He took home $15 yesterday. He’s currently building his newest stand right where Mikey’s used to be.MacDailyNews, April 23, 2009

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