Market Observers: Apple Pockets Over 90 Percent Of Smartphone Profits

According to an investment bank almost the entire profit of the Smartphone industry accounted for Apple, despite an iPhones market share less than 20 percent. The introduction of more iPhones have significantly shrink Samsung’s profit share.

92 per cent of the profits, eight of the world’s largest smartphone manufacturer by 2015 was achieved in the first quarter, dropped an Apple. This emerges from an analysis of the Investment Bank Canaccord Genuity, which has published the Wall Street Journal. In the same quarter last year, the profit share of the iPhone manufacturer had been at 65 per cent, the sharp increase had taken place only on 90 percent with the introduction of larger models iPhone 6 and iPhone 6 plus in last autumn.

Samsung’s profit share is 15 percent according to the Bank. Because the other producers lose money or achieve just the break-even point, Apple’s and Samsung’s added together share over 100 percent, there are explained the economic newspaper. With the introduction of the iPhone in 2007, had Nokia generated nearly 70 percent of the profits, notes Canaccord, in 2012 Apple and Samsung would have divided is still the industry profit.

Larger iPhone fetch higher prices

The high-end segment with the Smartphones have shifted now but clearly from Samsung to Apple, a Canaccord analyst pointed out. The average price of the iPhone was according to market researchers, in the first quarter nearly $660, due by the demand of the models with larger screens by 4.7 “and 5.5”. The average price had increased compared to the previous quarter to around 60 dollars.

Different business models

The business model does not exist for all Smartphone manufacturers from selling hardware, writes the Wall Street Journal, among others, Microsoft and Xiaomi try following to generate revenues through app sales and accessories. In these areas, but also Apple vigorously makes sales, in addition to sale the iPhone hardware. Samsung also makes money through the production of Smartphone components-the iPhone maker is one of the largest customers. (lbe)