How Apple sucks the profit out of mobile phones

“With 17.2% of the smartphone market in 2015, Apple captured 91% of the profit,” Philip Elmer-DeWitt reports for Fortune. “Samsung, with 23.9% of the market, took 14% of the profit.”

“Canaccord Genuity analyst Michael Walkley, who posted this data last week, has been monitoring the situation for several years,” P.E.D. reports. “Apple and Samsung shared 105% of the profit last year. That’s because so many of their competitors lost money.”

with iPhone, Apple “took 91% of what Walkley calls the mobile market’s ‘value share’ in four of the past five quarters,” P.E.D. reports. “In the fifth, it took 93%.”

Check out the interactive bar chart that will give you a sense of how thoroughly Apple dominates the mobile phone market here.

MacDailyNews Take: Total dominance.

SEE ALSO:
Apple’s iPhone can soon reap 100 percent of world’s smartphone profits – November 17, 2015
Apple’s iPhone owns 94% of smartphone industry’s profits – November 16, 2015

17 Comments

    1. No, Apple does not own Wall Street, the 3-letter acronyms do. When Apple becomes completely compromised and all privacy is gone, then Wall Street will treat Apple nicely. Until, then it is a stacked deck and the house always wins.

      1. To use an abused term: Apple is a maverick. Wall Street perennially HATES Apple because it is the superior business model and the typical Wall Street model these days is NOT. WallNut Street wants to parasitize everything it can lay its demented, Scrooged, drug addled, selfish, self-destructive claws on. Apple is, by contrast, SANE and COLLABORATIVE with its customers. WallNut Street hates that. Thus the perennial ‘Apple is arrogant’ routine, when in fact it is a clash between QUALITY and TRASH.

        The mindset of WallNut Street in general these days is that invesTards are desperate for something quick and easy that will hand them profit. Except, they’ve managed to kill all that off due to the list of self-loathing adjectives I posted above. Finding themselves in a pig wallow of their own creation, they scour out value from anything at hand. At the moment that happens to be SUCKER dayTarders (my insulting term for daytraders). FUD mongering is the propagandist trickery of the day. Sell your stocks in a panic please. We’ll buy them up and make a fortune off you when they stock values inevitably correct themselves in a positive direction.

        AAPL has to be one of the more remarkably UNDERvalued stocks in human history. It is also remarkably stable in its company’s progress over time. Therefore, what better suckers to parasitize than AAPL dayTarders?

        Yes, it’s all quite sick, demented and unworthy of human beings.

        I have no doubt there is A LOT more going on with the WallNut Streeters. But this is one blatantly obvious scenario. Being cynical about WallNut Street is a very wise thing to do.

  1. This is a well-known fact and it’s been this way for quite a while, but in what way is this helping shareholders see any gains. One would think Apple has a huge advantage in terms of using those profits to boost R&D and keep the iPhone in the lead. However, as far as Wall Street is concerned, Apple has no advantage whatsoever. One would also think Apple taking so much profit would make other smartphone companies give up the smartphone market, but that hasn’t happened either.

    I see it as a very frustrating situation as Apple continues to lose value for about an entire year. It’s just crazy. The F.A.N.G. stocks will recover faster than Apple and they’ll soar while Apple goes nowhere. It’s likely even Microsoft will have higher share gains than Apple this year. Apple shareholders have run into a long streak of bad luck with no chance of recovery in sight.

  2. Ya, right. And Apple users must also be slow learners, too, since they’ve been overpaying for a long time, and have not figured out they are being ripped off ! ha ha ha

    Except for the simple fact that Apple and the iPhone have the best value proposition going. Value your privacy and security, anyone?

    Besides, Apple consumers are savvy enough to prefer to reward true innovators, not con jobs and rip-off artists. The lights are on, but nobody’s home in the Android camp.

    Hey, who ya gonna call?

    1. Come on now! What do you expect? This is MDN who report on a company that strives for excellence. MDN does not have to strive for excellence themselves thought. They frequently publish mistake after mistake with no apology.

  3. Perhaps if the other phone makers weren’t selling their devices at a loss or nearly at at loss, they would make more profit. Say what you want about Apple’s prices, but being profitable is very important and necessary to building high quality products. Apple says they’re in this because they love to build great products, and I believe that. But profitability is also a motivator. They’re making a lot of money building great products.

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