iPhone Makes Up 73% of All Mobile Phone Profits

While iOS and Android continue to compete, and the market share battle between Samsung and Apple continues to rage onward, Asymco analyst Horace Dediu reveals that the fight isn’t as close as many think, and that Apple is coming out on top by a significant margin.

According to the report, Apple and Samsung combined account for a massive 99% of profits among top mobile phone vendors in the first quarter of 2012. But even though the iPhone 4S is no longer a “new” device, Apple has still managed to take the lion’s share of those profits at 73%.

What’s even more interesting is the margins involved. According to Asymco’s latest worldwide mobile phone numbers, Apple accounts for only 8.8% of all mobile phones worldwide, yet they reap 73% of profits.

Apple’s main advantage, and the reason why their profits so dramatically exceed that of their competitors, is their supply chain. Apple is able to purchase massive quantities of components in advance, and is able to secure better prices by paying cash rather than using credit. They also have more pull with carriers when it comes to pricing and subsidies.

Whatever the reason, one thing is clear: Apple’s kicking serious butt in the mobile market!

J. Glenn Künzler

Glenn is Managing Editor at MacTrast, and has been using a Mac since he bought his first MacBook Pro in 2006. He lives in a small town in Utah, enjoys bacon more than you can possibly imagine, and is severely addicted to pie.