Apple Captured 79% of Global Smartphone Profits in 2016

Tuesday March 7, 2017 5:44 PM PST by Husain Sumra
The iPhone captured 79 percent of global smartphone profits in 2016, according to new research from Strategy Analytics obtained by The Korea Herald. Global smartphone profit stood at $53.7 billion, with Apple's iPhone profit accounting for $44.9 billion.


Apple held 14.5 percent global smartphone marketshare in 2016, second behind Samsung's 20.8 percent global marketshare. For comparison, Samsung, which posted an $8.3 billion profit, accounted for 14.6 percent of global profits in 2016.

The Cupertino company typically dominates global profit share despite not holding a large amount of marketshare in the smartphone segment. In the first quarter of 2015 alone, Apple accounted for 92 percent of global smartphone profit on 20 percent of actual smartphone sales. Similarly, in the fourth quarter of 2014 Apple captured nearly 90 percent of smartphone profit.

Much of Apple's success in late 2014 and early 2015 can be attributed to the popularity of the iPhone 6 and 6 Plus, sending Android global profit share down to 11.3 percent during the fourth quarter of 2014, down from 29.5 percent in the fourth quarter of 2013.

The popularity of the iPhone 7 and 7 Plus helped bolster a .5 increase in smartphone shipments year-over-year in the fourth quarter of 2016, edging Samsung to make Apple the world's top smartphone maker in the quarter.

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tillsbury
19 months ago

I don't like this news. Apple is greedy.


So, you believe that the reason Samsung only made $8b profit last year is because they were being altruistic? I don't get it...
Rating: 9 Votes
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v0lume4
19 months ago
Not surprised. Apple's supply chain prowess and ability to command a 40-50% markup is unmatched. It really is remarkable -- I can't name another company pulling in similar margins. It sucks for us, the consumer, since iPhones cost ~$700+. But we keep buying.*

* we - The general public
Rating: 8 Votes
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realeric
19 months ago
I don't like this news. Apple is greedy.
Rating: 8 Votes
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Cole Slaw
19 months ago
Well this is good news.
I'm hoping the next iPhone costs at least $1500 so they can make even more money!
Rating: 7 Votes
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now i see it
19 months ago
Since when is making excessive profit at the expense of all of us a good thing? It's kind of a nasty statistic. Hooray hooray, Apple gouges its customers deeper than anyone else.
Rating: 4 Votes
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69Mustang
19 months ago

A Samsung high end phone costs basically the same, but after 2 years it's worthless.

An used iPhone keeps an unbelievable value, because 1) Apple never discounts phones at mid life like all others and 2)

You're making points that have nothing to do with [USER=722356]@v0lume4[/USER] quote nor the topic of the article.

This is about profits and percentages of said profits. The resale value of used iPhones and Galaxies have nothing to do with those profits. In fact, each sale of one of those "used iPhone keeps an unbelievable value" actually takes profit away from Apple.:eek:

Apple never discounts phones at mid life? Uh, that's not true. Outside of the debut period, iPhones can be found discounted as low as BOGO (buy one get one) pricing through multiple carriers. I think AT&T is still running that promo now. Speaking of AT&T, they're one of Apple's biggest customers. Not you and me. The vast majority of Apple's iPhone profit comes from their primary customers: telcos, big box retailers, etc. For the most part, Apple doesn't get paid when you go into a store to buy a phone. Apple was paid long ago when that phone was put on a boat, truck, or plane and shipped to their customers.
Rating: 4 Votes
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Cole Slaw
19 months ago

Since when is making excessive profit at the expense of all of us a good thing? It's kind of a nasty statistic. Hooray hooray, Apple gouges its customers deeper than anyone else.

It's the way Apple has always operated.
Tim's just honed it into a fine, and very lucrative, art.
I expect that Tim will push this even harder this year ($$$) with the iPhone X (8?) to see just how far up the bum consumers will be willing to take it.
Rating: 3 Votes
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sblemmy
19 months ago
"Winning for Apple is not about making the most..."

This should silence the Cook-haters for a day or so.
Rating: 3 Votes
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djcerla
19 months ago

I can't name another company pulling in similar margins. It sucks for us, the consumer, since iPhones cost ~$700+. But we keep buying.*

* we - The general public


Yes?

A Samsung high end phone costs basically the same, but after 2 years it's worthless.

An used iPhone keeps an unbelievable value, because 1) Apple never discounts phones at mid life like all others and 2) iPhones are in high demand.

Sticker price is only a part of the equation.
Rating: 2 Votes
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H2SO4
19 months ago

A bit disingenuous don't you think? Apple's website. Okay. If we're going to do that, then you can say no OEM discounts their phones.


That's a pretty big caveat. Some people resell their phones. Just as many people pass their phones down to family members, friends, etc.

Apple's profit margins are a non-issue because Apple charges what the market will bare. Period. As long as their pricing is acceptable to the market why would they charge any less? It's a for profit, public company with a fiduciary responsibility to it's shareholders. Nothing more, nothing less.


Where are you going with this and what does it have to do with iPhones?

Round in circles and nothing. This guy has never had any Apple product go wrong.
[doublepost=1488982707][/doublepost]

Omg yes! And I remember it used to be 90+% and now it has dropped to 79%

My bad. It was 104%, and here’s the link ('//forums.macrumors.com/threads/apple-takes-104-of-all-smartphone-profits-following-galaxy-note-7-recall.2012496/').
Rating: 2 Votes
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