iPhone Accounts for Nearly 90% of Smartphone Industry Profits in Fourth Quarter - MacRumors
Skip to Content

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

by

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: Android, iOS, Strategy Analytics

Top Rated Comments

macduke Avatar
macduke
150 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? ;)
Score: 11 Votes (Like | Disagree)
haruhiko Avatar
haruhiko
150 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%+.
Score: 8 Votes (Like | Disagree)
Traverse Avatar
Traverse
150 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.
Score: 6 Votes (Like | Disagree)
Awfisch Avatar
Awfisch
150 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.
Score: 6 Votes (Like | Disagree)
N
Nozuka
150 months ago
not really surprising considering what they charge for it

true, but more importantly people are actually willing to pay that price.
Score: 5 Votes (Like | Disagree)
bushido Avatar
bushido
150 months ago
not really surprising considering what they charge for it
Score: 4 Votes (Like | Disagree)
Read All Comments

Popular Stories

sunbird app

Sunbird's iMessage for Android App Returns to the Google Play Store

Wednesday August 5, 2026 12:43 pm PDT by
Sunbird Messaging today reintroduced its app that brings iMessage to Android users. Sunbird is now available on the Google Play Store following an early access testing period. The app allows Android users to send "blue bubble" messages to iPhone users instead of the standard green bubbles. It incorporates iMessage, RCS, and SMS/MMS messages in one app. Sunbird was previously available from...
Read Full Article • 64 comments
RCS Feature 1

iOS 27 Finally Fixes Replying to Android Texts

Monday August 17, 2026 7:28 am PDT by
When iOS 27 arrives next month, you'll be able to reply to a specific green chat bubble (aka an Android message) in a Messages conversation on your iPhone. All you need to do is press and hold the message, tap Reply, then type your response. It will be received by the recipient as a real threaded reply (i.e. an inline reply), tying it directly to the message in question. It's the same with...
Read Full Article • 34 comments
Apple Logo Gradient 16x9 1

Apple Just Made an Extremely Rare Product Announcement

Thursday August 27, 2026 7:58 am PDT by
The new Mac mini and Mac Studio models unveiled by Apple this week are the company's first new Macs announced in August since 2020. It is extremely rare for Apple to announce new products of any kind in August, excluding smaller things like new color options and accessories. As mentioned, Apple's last notable August product announcement was in 2020, when it updated the 27-inch iMac and a...
Read Full Article