Apple's Share of Smartphone Industry Profit Rises to 92%, Despite iPhone Representing Less Than 20% of Sales
A new report out over the weekend by Canaccord Genuity estimates that Apple has recorded a 92 percent share of the world's entire smartphone market in the first quarter of 2015, which is up from 65 percent a year earlier. The company managed to do so on less than 20 percent of actual smartphone sales, which the Wall Street Journal accounts to the company's "ability to command much higher prices for its phones."
Behind Apple was Samsung with a total of 15 percent of the smartphone market, with the two combining to tally up for more than 100 percent of the industry's profits, "because other makers broke even or lost money, in Canaccord’s calculations." In the early days of the iPhone, Canaccord estimates that Nokia was holding two-thirds of the smartphone industry's profits, but by 2012, Apple and Samsung shared the industry's profits at a nearly exact 50/50 split.
“The dominance of Apple is something that is very hard to overcome,” said Denny Strigl, former chief operating officer of Verizon Communications Inc. “Apple has to stumble somehow or another, and I don’t think that’s going to happen.”
Canaccord contributes Apple's bigger-than-ever market dominance to a combination of increased iPhone sales and higher prices for the bigger-screened iPhone 6 and iPhone 6 Plus released last year. A year before, an iPhone sold at an average of $624 -- compared to $185 for Android-running smartphones -- according to data collected by Strategy Analytics. By the end of 2015's first quarter, Apple had sold 43 percent more iPhones than the year before and at a higher price of about $659 thanks to the bigger screened models.
Apple's dominance doesn't seem to be slowing down as we move closer to the launch of the next generation of iPhone, with the company reportedly ordering a record-breaking amount of units for the so-called "iPhone 6s" launch later this year. Its rivals won't be threatening to take any of its market share at the moment, either, with companies like HTC and Samsung reporting quarterly losses and "disappointing profits" and Microsoft just last week laying off 7,800 employees, primarily in its smartphone business.
Popular Stories
Apple has announced it will be holding a special event on Tuesday, May 7 at 7 a.m. Pacific Time (10 a.m. Eastern Time), with a live stream to be available on Apple.com and on YouTube as usual. The event invitation has a tagline of "Let Loose" and shows an artistic render of an Apple Pencil, suggesting that iPads will be a focus of the event. Subscribe to the MacRumors YouTube channel for more ...
Apple has dropped the number of Vision Pro units that it plans to ship in 2024, going from an expected 700 to 800k units to just 400k to 450k units, according to Apple analyst Ming-Chi Kuo. Orders have been scaled back before the Vision Pro has launched in markets outside of the United States, which Kuo says is a sign that demand in the U.S. has "fallen sharply beyond expectations." As a...
Apple has stopped production of FineWoven accessories, according to the Apple leaker and prototype collector known as "Kosutami." In a post on X (formerly Twitter), Kosutami explained that Apple has stopped production of FineWoven accessories due to its poor durability. The company may move to another non-leather material for its premium accessories in the future. Kosutami has revealed...
The upcoming iOS 17.5 update for the iPhone includes only a few new user-facing features, but hidden code changes reveal some additional possibilities. Below, we have recapped everything new in the iOS 17.5 and iPadOS 17.5 beta so far. Web Distribution Starting with the second beta of iOS 17.5, eligible developers are able to distribute their iOS apps to iPhone users located in the EU...
Apple is finally planning a Calculator app for the iPad, over 14 years after launching the device, according to a source familiar with the matter. iPadOS 18 will include a built-in Calculator app for all iPad models that are compatible with the software update, which is expected to be unveiled during the opening keynote of Apple's annual developers conference WWDC on June 10. AppleInsider...
The lead developer of the multi-emulator app Provenance has told iMore that his team is working towards releasing the app on the App Store, but he did not provide a timeframe. Provenance is a frontend for many existing emulators, and it would allow iPhone and Apple TV users to emulate games released for a wide variety of classic game consoles, including the original PlayStation, SEGA Genesis,...
Top Rated Comments
Sometimes it's important to remember how hard we work for our money and how much we pay to a company. There's just something a little cult-like about throwing cash at a company and then cheering when we find out how much profit they've made. It seems really strange.
This isn't likely to be a popular opinion — I just feel a little jaded and I fully appreciate how petulant I must be sounding.