Apple Continues To Dominate Smartphone Revenues
Though Apple’s market share has ebbed and flowed over time, ceding ground to rival Samsung, data suggests that the company’s profitability remains higher than ever.
According to Strategy Analytics, Apple took home 83.4% of operating profits within the smartphone industry.
This corresponds with a slip by Samsung to only 12.9% of the industry’s operating profit, versus last year’s 21.9%.
While all reports suggest that Samsung is gaining on Apple when it comes to both the quality and popularity of their handsets, it appears they still lag behind in profitability.
Samsung is said to be only generating roughly a third of what Apple makes per sale of their flagship products.
SamMobile says that “Apple’s operating profit ratio in relation to sales amounts to 30.7 percent. This is considerably higher than the 9.7 percent profit to sales ratio for Samsung.”
Yonhap News Agency reports that “of some 300 smartphone makers, only around 10 companies are generating profits.”
“In terms of profitability, Apple’s domination and the market’s bipolarization between companies that make money and those struggling to turn a profit are becoming clear.”
In their latest earnings report, Apple recorded an operating profit of $10.1 billion and past reports have suggested that Apple’s margins on iPhone sales could be as much as three times its production cost.