Apple is yet again riding on the crest of huge profit wave and has clocked around 92% of the total operating income from the world’s eight top smartphone makers in the first quarter, as per the latest estimates from Canaccord Genuity.
Notably, this enormous profit share comes from only 20% percent of actual smartphone share in the global market. This underscores the company’s ability to command much higher prices for its iPhones, while android-to-iOS switching ratio still continues to rise.
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. Meanwhile. HTC Corp. reported a quarterly loss, and Microsoft Corp. wrote down 80% of the value of the smartphone business it acquired from Nokia Corp. last year.
By the end of 2015’s first quarter, Apple had sold 43 percent more iPhones than the year before and that too at higher price tags which came along with its 6 and 6 plus models.
Microsoft and Xiaomi aim to profit after phones are sold, through paid app downloads, phone accessories or other add-ons. However, Apple follows a complete different strategy, and that has made all the difference.
Apple seems to be in perfectly right momentum right now (though it has always been), especially when it is close on the heels of announcing the next generation of its iPhones. The results demonstrates the rapidly shifting fortunes in the smartphone business.
Just so you know though, in 2012, the profit split between Apple and Samsung was around 50:50, which then shifted more and more in Apple’s favor. Also, Apple plans to produce a record number of iPhone 6S handsets this year, aiming to top 90M units by the end of the year. And it’s very obvious that Apple wont’ be loosing its top spot in profits any soon.
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