Apple has received 70% of the profits of manufacturers of smartphones
Apple sold a record number of smartphones in the last fiscal quarter of last year and had $13 billion profit from all of their products, but if we talk only about iPhones, they generated 70% of the entire industry profit from all smartphones. Apple has managed to collect about 3 times more money than Samsung, which has 25% of industry profits and 35 times more money than Nokia, the Finnish company cashed only 2% of the profits generated by this industry.
…a new report issued by Hong Kong’s Counterpoint Research clearly acknowledges that Apple nabbed 70% of the global smartphone profits, Samsung 25% and Nokia 2%. How great is Samsung’s leadership when they could only muster about a third of Apple’s profits while offering 5 to 10 more smartphone models than Apple? It just goes to prove that Samsung’s so-called smartphone leadership is in bravado alone pumped up by the press who thinks that market share is the only measure of leadership.
Samsung and Apple have received almost 95% of the entire industry profit of manufacturers of smartphones, and it’s a huge percentage when one considers that only two companies have done everything. In the same period last year, Apple and Samsung have received 66% of the profit from the same industry, increasing it by 29% in one year. Dominance of the two companies reveals that manufacturers of the rest of the smartphones matters little in a market where iPhones, Galaxy S smartphones are important.