“Apple continues to collect the lion’s share of the smartphone’s industry’s profit,” Puneet Sikka writes for Market Realist. “According to Asymco, out of the $215 billion net operating profits earned in the last six years, Apple has raked up about 62% of the industry’s operating profits.”
“According to the same report, Samsung had a profit share of 26%, Nokia’s share was less than 10%, HTC’s share was 2.8%, and BlackBerry’s share was 1.9%,” Sikka writes. “This report re-confirms our belief that Apple’s innovation has helped the company gain an edge over its competitors in terms of what matters most for a company—profit.”
“Although Google’s Android is the most popular smartphone operating system, the [below] chart suggests that there’s no comparison to Apple’s domination when it comes to profitability,” Sikka writes. “According to IDC, Android share in the global smartphone operating system market in terms of shipments increased from 69.0% in 2012 to 78.6% in 2013. Android dominates this market in terms of shipments, but it pales in comparison to Apple in terms of profitability.”
“Apple has always concentrated on innovation, which enables the company to sell the iPhone at a much higher price than competitors,” Sikka writes. “For example, in the U.S., Apple has tied in with telecom operators such as Verizon and AT&T, which sell the iPhone at a highly subsidized price to customers in lieu of two-year contracts. However, Apple gets the full price for the iPhone from telecom providers that it sells to, which is upwards of $500. This isn’t only true of developed markets, but also emerging markets.”
Much more, including “why Apple dominates the Chinese high-end smartphone market,” how “Apple converts brand desirability into real emerging market sales,” “why Android fragmentation in China is good news for Apple,” and how “an earlier iPhone 6 launch would help Apple avoid Samsung’s threat” in the full article here.
[Thanks to MacDailyNews Reader “MotivDev” for the heads up.]
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