Apple's Share of Mobile Phone Profits Rises to 93% on iPhone 6 Launch

The latest numbers from Canaccord Genuity reveal that Apple accounted for 93% of mobile profits during the fourth quarter, leading the financial services company to raise its price target on Apple shares from $135 to $145. The firm also predicted that iPhone adoption could grow to 650 million users through 2018 as more smartphone owners upgrade to the iPhone 6 and iPhone 6 Plus.

Canaccord Mobile Profits

Barron's shares Canaccord Genuity analyst Mike Walkley's note to investors:

We believe the strong iPhone 6 replacement sales should continue during C’15, as we estimate only 15% of the current estimated 404M iPhone installed base has upgraded to the new devices. We also anticipate continued strong share gains for the larger screen iPhones from high-tier Android smartphones during C’15 driving strong growth in the iPhone installed base and model the iPhone installed base growing to 487M subscribers exiting C’15 up 20% Y/Y.

Apple and Samsung combined to capture all profits in the mobile industry during the fourth quarter, as competitors including Microsoft, BlackBerry, HTC, Sony, LG and Lenovo either broke even or faced a loss in value share during the three-month period. Apple captured 79% of mobile profits for the entirety of 2014, with a margin of 37% on operating income of $44.6 billion.

Tag: AAPL

Top Rated Comments

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2457282

55 months ago

I find it amazing to see that with all the competition (even to the point of selling at a loss), apple is still able to maintain those kinds of margins. It speaks (at least to me) how well Apple does at all levels (hardware, OS, Apps, Marketing). Really impressive.

Rating: 6 Votes

Crosscreek

55 months ago

I think Apple should add a 4" iPhone 6- to make up for that other 7%.

Rating: 5 Votes

sundog925

55 months ago

This post is poorly written. You're talking about financials, and then predicted adoption rates in the same copy. "Apple and Samsung combined to capture all profits in the mobile industry during the fourth quarter..." WTH does this even mean? They joined forces? Basically copying the linked to article and barely changing it into your own words doesn't constitute as journalism. You took the whole context of the original article and skewed it, and not in an understable way. Next time just link to the original article and save us the headache, NOT your own article on MR. That's just redundant.

Rating: 3 Votes

Michael Goff

55 months ago

Marketing won't save Microsoft. They were very unprepared for the post pc, mobile era. They have no mojo, no momentum and no foothold. It's iOS or Android. MS doesn't get a halo effect from its pc business and there is no compelling reason for mobile users to leave iOS or Android.

Can we drop this post PC nonsense?

Rating: 3 Votes

Dyspareunia

55 months ago

So yeah, clearly, Apple is doomed!;)

Rating: 1 Votes

512ke

55 months ago

What is that, Apple makes 13X more profit than all its mobile competitors combined?

Granted I suck at math but the competitors are sucking at business at least compared to Apple.

Rating: 1 Votes

CEmajr

55 months ago

Microsoft seems to be going with the Xbox strategy of taking heavy losses in order to gain a foothold in the market. Problem is it doesn't look like Apple is going to give away their position like Sony did with video games.

Rating: 1 Votes

i.mac

55 months ago

What is that, Apple makes 13X more profit than all its mobile competitors combined?

Granted I suck at math but the competitors are sucking at business at least compared to Apple.

It is easy to see that samedung and M$ commercials making fun of apple customers really paid for them.

Rating: 1 Votes

ArtOfWarfare

55 months ago

The firm also predicted that iPhone adoption could grow to 650 million users through 2018

This is the most amazing part to me.

The world population in 2018 will be 7.2 B people. 1 in 11 (9%) people in the entire world will be using an iPhone according to this firm.

It's estimated that in 2018 half of the world will have an internet connection. So about 18% of those people will have iPhones.

It just seems amazing that so many people will be able to afford one.

Rating: 1 Votes

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