Amongst the thousand smartphone companies existing across the globe, Apple laps up the most industry profits. According to The Wall Street Journal, Apple has managed to rake in 92 percent of all smartphone industry profits in first quarter of 2015. Also Read - Apple reportedly working on a device that adds a camera and speaker to the Apple TV
This massive profit margin is attributed to the high price tags associated with the iPhones. The report states that the average iPhone is priced at nearly $659, which is over three times higher than the $185 average price of an Android smartphone. At the end of last year’s first quarter, Apple accounted for 65 percent of all industry profits. Also Read - Apple Arcade gets 32 new games, two more categories
If you look at the unit sales, Apple only managed to garner 20 percent stake in total smartphone sales across the globe in first quarter. This reflects again on the high profit margin that the company enjoys due to the goodwill it has collected over the years. Also Read - Apple iPhone 12 was the best selling smartphone in January: Counterpoint
Coming in second, Samsung took 15 percent of profits in first quarter. This is also due to the late release of its flagship Galaxy S6 and Galaxy S6 Edge, when compared to the iPhone 6 and iPhone 6 Plus which released last year. The percentage of industry profit is expected to increase as time progresses.
The report also cites experts claiming that, while Apple enjoys an elitist post with its exclusive iOS operating system, all the hundreds of Android smartphone makers are finding it increasingly difficult to keep profit margins high. Brands like Xiaomi, Lenovo and Motorola have crowded the market with affordable smartphones that offer lucrative specs making brands like Samsung who make smartphones in higher price segments suffer.
