Apple’s iPhone can soon reap 100 percent of world’s smartphone profits

“During the last financial quarter that ended in September, Canaccord Genuity’s Michael Walkley’s analysis shows Apple had its fourth consecutive quarter earning more than 90 percent of the available profits in the smartphone market, with Q3 2015 seeing Apple take a record 94 percent of the available profits,” Ewan Spence writes for Forbes.

“Even though Apple captured just fifteen percent of the share of unit sales,” Spence writes, “it not only maximised its financial advantage, but increased it (Q2 2015 saw 92 percent of the profits flow to Apple).”

“If the two percent rise this quarter continues, Apple could reach the 100 percent level by the end of June 2016,” Spence writes. “It may be a mathematical curiosity, but there’s nothing to stop the numbers showing Apple capturing 100 percent of smartphone profits over the next few years.”

Read more in the full article here.

MacDailyNews Take: Total dominance.

Android is an inferior, unprofitable knockoff peddled to cheapskate tech illiterates who do not value their privacy and/or who are so blind as to be unable to recognize a half-assed fake from the revolutionary original.

Here’s what Google’s Android looked like before and after Apple’s iPhone:
Google Android before and after Apple iPhone

SEE ALSO:
Apple’s iPhone owns 94% of smartphone industry’s profits – November 16, 2015
Apple iPhone owns over 90% of smartphone profits, so why do others even bother fighting over Apple’s scraps? – October 8, 2015
Beleaguered Samsung’s future depends more on components than on copying Apple – October 7, 2015
Beleaguered Samsung finding it tough to compete Apple’s revolutionary iPhone – October 6, 2015
Apple’s iPhone juggernaut continues with record-breaking sales while Android peddlers fight over scraps – September 28, 2015
Apple’s iPhone owns 92% of smartphone industry’s profits – July 13, 2015
Poor man’s iPhone: Android on the decline – February 26, 2015
Study: iPhone users are smarter and richer than those who settle for Android phones – January 22, 2015
Why Android users can’t have the nicest things – January 5, 2015
iPhone users earn significantly more than those who settle for Android phones – October 8, 2014
Yet more proof that Android is for poor people – June 27, 2014
More proof that Android is for poor people – May 13, 2014
Android users poorer, shorter, unhealthier, less educated, far less charitable than Apple iPhone users – November 13, 2013
IDC data shows two thirds of Android’s 81% smartphone share are cheap junk phones – November 13, 2013
CIRP: Apple iPhone users are younger, richer, and better educated than those who settle for Samsung knockoff phones – August 19, 2013

10 Comments

  1. Take by Wall$treet and tech anal-ists: Only 92% of the smartphone profits? How disappointing! Shows Apple’s lack of domination. Apple’s profit share should be 110%, Apple is headed for trouble! /s 🖖😀⌚️

      1. I tend to agree with you even if you’re being sarcastic. I don’t think Apple can win unless it does it with about 50% smartphone market share because that’s what Wall Street’s key metric of value is. I personally think it’s useless for Apple to attempt to have more than 25% smartphone market share because any more would be a waste of time and effort if Apple is only looking for the cream. So in a way, Apple’s good financial sense is actually dooming Apple’s value in Wall Street’s eyes. It’s an odd conundrum.

        It’s funny when investors cry over a loss of a million iPhone sales which would probably only be worth about .02% of profits lost. It’s totally silly to weep over such a small loss. It doesn’t doom Amazon so why should it doom Apple.

        My question is why would investors want major market share if major profit doesn’t exist there. Does that make any sense? Does market share have anything to do with having a feeling of security to investors?

        1. If Apple has 92% of the profits you would think that eventually the losing players would drop out, perhaps helping the second place improve its profitability, and perhaps helping Apple gain lower margin (but still profitable) share with older smaller cheaper models.

  2. real trash article coming from force’s. editor is asleep. author used 2nd grade static analysis “if everything does not change, then adding 2% to 94% will take apple to 100%”. anyone who actually gets paid for doing real analysis would get fired for this thinking at 2 levels. first, in business companies react. that automatically makes the static analysis useless. 2nd, since the only other real company making a profit is samsung, this assumption means they would have to actually start losing money, or break even on smartphones. they may be evil, but they are not stupid. article is a waste of ink.

    1. Incorrect. Samsung is now taking 11% of the global share, plus Apple’s 94% = 105, BECAUSE others are operating at a loss (like Microsoft) bringing the total to 100 again. Apple could reach 100 and Samsung still be profitable.

  3. I guess the author never heard of an asymptote. Unless some companies enjoy operating at a loss, they’ll get out of the business soon enough and Apple will have 100% of profits AND marketshare. If Android can only pick up 6% of the profits with 85% of the marketshare, I guarantee there are companies staying in the game simply in order to keep up a corporate presence. That can’t last long if stockholders have any say.

  4. Apple’s iPhone can soon reap 100 percent of world’s smartphone profits

    Well yeah, if loon statisticians continue to insist upon ‘smart’phone seller LOSSES as negative profit numbers in their silly profit percentages equation. – – Maybe they should go back to college again and learn how to do it correctly. 😛

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.