iPhone Accounts for Nearly 90% of Smartphone Industry Profits in Fourth Quarter

Thursday February 26, 2015 7:24 AM PST by Joe Rossignol
iphone6-stockThe latest numbers from Strategy Analytics reveal that Apple continued to dominate in global smartphone profit during the fourth quarter of 2014, capturing a record-high 88.7% share of profit during the three-month period ending December. Apple earned quarterly operating profit of $18.8 billion on iPhone sales, up from $11.4 billion during the fourth quarter of 2013.
"Global smartphone operating profit grew 31 percent annually from US$16.2 billion in Q4 2013 to US$21.2 billion in Q4 2014. Android hardware vendors combined took a record-low 11 percent global smartphone profit share, down from 29 percent one year ago. In contrast, Apple iOS captured a record-high 89 percent profit share, up from 71 percent in Q4 2013."
Overshadowed by the success of the iPhone 6 and iPhone 6 Plus, Android suffered a sharp decline in smartphone profit compared to its 29.5% share in the year-ago quarter. Android accounted for a record-low 11.3% share of global profit during the fourth quarter based on $2.4 billion in operating profit. Android had operating profit of $4.8 billion in the year-ago quarter. BlackBerry, Windows Phone and other mobile platforms recorded zero operating profit during the quarter.

Smartphone Profits Q4 2014 Strategy Analytics
These numbers reiterate that the smartphone industry is largely a two-horse race between Apple and Google, whether it be overall platform market share, enterprise market share or smartphone profit share. But if smartphone makers such as Samsung are unable to make decent profits based on the Android ecosystem, Strategy Analytics suggests that vendors may give more attention to alternatives such as Windows, Tizen or Firefox in the future.

Tags: iOS, Strategy Analytics, Android
40 comments


Top Rated Comments

(View all)
Avatar
macduke
51 months ago
But…but…but according to like 95% of people online, market share is what matters. Open your eyes sheeple, the end is nigh for Apple! There is no way they can survive on these incredibly massive profits alone if they aren't selling the majority of phones. They are clearly doomed! It's all marketing and hype and overpriced bendy phones. Apple steals all of their ideas from Android, like larger displays, and Steve never would have allowed that. Design isn't that important anyway, and neither is privacy. The only thing that matters are free web services, MOAR megapixels, and OLED even though I don't know what that means. Enjoy your walled garden. My Samsung Nexus One S5 Galaxy Droid is only 99 cents, so get wrecked Apple fanboys!

Did I cover everything? ;)
Rating: 11 Votes
Avatar
haruhiko
51 months ago
Samsung charges as much or even more than iPhone for their flagship models. And yet much less people buy them now and their profit dropped 60%+.
Rating: 8 Votes
Avatar
Awfisch
51 months ago
Many people see this as a bad thing because it shows Apple charges absurd amounts for their phones. While they may be expensive, I think it's a good sign. It shows that people actually want to buy iPhones. Other manufacturers are making little to no profits because they have to lower their prices so much in order to get people to buy their phones. Some companies are selling their phones at a loss just to clear inventory.
Rating: 6 Votes
Avatar
Traverse
51 months ago

Hmm sounds like its time to reduce profit levels so they can actually sell at reasonable prices. Maybe they can take more of the market while still making just as much if they actually sold a phone that was cheaper than $450 off contract.


Hehehehe. You're adorable. Reasonable prices...BWAHAHAHAHAHAHAHAHAH.


i do agree with you, but it won't happen.
Rating: 6 Votes
Avatar
Nozuka
51 months ago

not really surprising considering what they charge for it


true, but more importantly people are actually willing to pay that price.
Rating: 5 Votes
Avatar
bushido
51 months ago
not really surprising considering what they charge for it
Rating: 4 Votes
Avatar
Traverse
51 months ago
Do you know what this means? Their stock will drop.

Wall Street wanted 91% of all profits. :rolleyes:
Rating: 3 Votes
Avatar
aloshka
51 months ago

But…but…but according to like 95% of people online, market share is what matters. Open your eyes sheeple, the end is nigh for Apple! There is no way they can survive on these incredibly massive profits alone if they aren't selling the majority of phones. They are clearly doomed! It's all marketing and hype and overpriced bendy phones. Apple steals all of their ideas from Android, like larger displays, and Steve never would have allowed that. Design isn't that important anyway, and neither is privacy. The only thing that matters are free web services, MOAR megapixels, and OLED even though I don't know what that means. Enjoy your walled garden. My Samsung Nexus One S5 Galaxy Droid is only 99 cents, so get wrecked Apple fanboys!

Did I cover everything? ;)


no you pretty much got it

----------

I was gonna say Google needs to close down it's operating system a bit, and limit who can make an Android phone but that wouldn't help. Android is doomed.


Google pushed privacy and ads too much and I think people might be noticing (I think). I'm opened minded and was actually going to buy a nexus 6 yesterday but when I played around with it in the store I noticed Google maps now has a bar that gives you "suggestions" e.g. Paid ads of what is around an area. I thought for a close to $700 phone I don't want to see that. 100 dollar phone sure, but not a premium flagship.
Rating: 3 Votes
Avatar
MrXiro
51 months ago

Hmm sounds like its time to reduce profit levels so they can actually sell at reasonable prices. Maybe they can take more of the market while still making just as much if they actually sold a phone that was cheaper than $450 off contract.


Yeah... cause the smart plan after making boatloads of money while selling their product at high prices is to lower prices... :rolleyes:

Someone needs to take a Business 101 class.

----------

One has to wonder how long the multitude of Android vendors can last in the long term with near zero profits and losses. Sony is already considering exiting the market. Apple is absolutely crushing the industry. They really need to back to the drawing board and figure out what they're doing wrong.


Well that's simple; too many options at too many varying price points. Samsung alone can be blamed for this... but when you add in ZTE, ASUS, MOTOROLA, HTC, LG and the hundred of other brands floating around on the Android hardware market you've basically built a 711 or similar competitor on every street corner...
Rating: 3 Votes
Avatar
macduke
51 months ago

OMG, 90% of the profits, 700 Billion company and you think they are "clearly doomed"


The joke -> ~~~WHEEEEE

Your head -> :mad:

Me -> :D
Rating: 3 Votes
[ Read All Comments ]