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Apple’s Share of Smartphone Profit 92%, Despite Recording Only 20% of All Sales

Apple’s Share of Smartphone Profit 92%, Despite Recording Only 20% of All Sales

A new report from Canaccord Genuity estimates Apple grabbed 92% of the profit in the world’s smartphone market, while recording only 20% of actual smartphone sales. The Wall Street Journal attributes this to Apple’s “ability to command much higher prices for its phones.”

Apple's Share of Smartphone Profit 92%, Despite Recording Only 20% of All Sales

Samsung was second in the profits race, tallying 15% of the profits, which does total more than 100%, but that’s due to the other phone makers either losing money, or only breaking even.

Canaccord estimate that when the iPhone first broke into the market, Nokia held almost two-thirds of the smartphone market’s profits. However, it was a different picture by 2012, with Apple and Samsung splitting the industry’s profits 50/50.

Canaccord says Apple’s current profit dominance is a combination of increased iPhone sales, and the higher prices for the iPhone 6 and iPhone 6 Plus, released last fall. Data collected by Strategy Analytics shows Apple sold 43% more iPhones than the year before, and an average price of $659, up from $624 a year before.

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