“Apple shipped slightly more – 78.3-million vs. 77.5-million – iPhones than Samsung did all kinds of phones,” Wil Gomez writes for Mac360. “Yet, Apple took home 92-percent of the industry’s entire profits… So, how do iPhone’s competitors stay in business?”
“They don’t. In China, the largest smartphone market on planet earth, the top sellers sell plenty but struggle to make money, hence who is on top in marketshare changes every year, while Apple, usually in the Top 5 (and ahead of Samsung) takes most of the profits,” Gomez writes. “For Google, Samsung, Microsoft, they each have a different business model so revenue from other products and services helps to subsidize what is lost while competing head to head with Apple.”
Gomez wonders, “How long will some of these competitors with pockets that are not deep even stay in business?”
Read more in the full article here.
MacDailyNews Take: Yeah, they’re not making it up on volume. Mikey Dell can tell you all about how that race to the bottom goes.
As per tablets (iPads and iPad knockoffs), as we wrote last week:
For all of the hyperbolic blather about Microsoft’s Surface tablet in certain tech blogs, paid placements on NFL sidelines, etcetera, they’re not even in the top five. Even Huawei’s crap is outselling Microsoft’s Surface.
Apple took 92% of smartphone industry’s profits in Q416 – February 7, 2017
IDC: Apple iPad’s hold on the tablet market remains unchallenged – February 2, 2017