News

Apple Dominates 92% of Operating Margins in the Smartphone Industry

Despite only having a market share of less than 20%, Apple’s operating profits accounted for 92% of the top eight smartphone manufacturers according to Canaccord Genuity managing director, Mike Walkley. This particular analyst told The Wall Street Journal that, Apple’s revenue share dramatically increased from 65% in the first quarter of 2014 to 92% in Q1 of 2015. Strangely enough, the research outlined Samsung controlled 15% of operating profits which equates to 107% market share from these two companies. At first, this figure seems very dubious but 107% signifies the amount of hardware companies folding or experiencing financial difficulties.

So how does Apple maintain such a high gross profit margin? Mostly from brand awareness and marketing prowess. Apple is a hugely recognizable name and manages to evoke a sense of luxury to customers opting to pay the high handset prices. In comparison, Android phones are relatively affordable barring the flagship models from Samsung, HTC and LG. Apple’s strategy involves limiting the amount of devices available and this simplifies the buying process for those who aren’t technologically minded. Additionally, Apple products tend to hold their value exceptionally well and this might provide some reassurance on the initial investment.

The data isn’t surprising and once again illustrates how difficult it is for any mobile manufacturers to dethrone Apple’s monetary monopoly. Thankfully, there are viable alternatives and the Android market has a wealth of handsets to suit various price points. Unfortunately, the Windows Mobile scene isn’t doing too well and Blackberry are in deep trouble. Nevertheless, it seems Apple’s ability to charge a hefty premium for their products isn’t going to change anytime soon and other companies can only marvel at their advertising power.

Thank you The Wall Street Journal for providing us with this information.

John Williamson

Disqus Comments Loading...

Recent Posts

GTA 6 Already Winning Awards Before Its Launch

GTA 6 doesn’t have an official release date yet, but it has already earned a…

54 mins ago

DJI Osmo Mobile 6, 3-Axis Phone Gimbal

Stay on Point with ActiveTrack 6.0 - With upgraded tracking tech, OM 6 sticks to…

59 mins ago

Drayton Wiser Smart Radiator Thermostat TRV

Pack includes three Wiser Radiator Thermostats. These smart radiator thermostats are only designed to work…

1 hour ago

Gigabyte B650 EAGLE AX Motherboard

AMD Socket AM5:Supports AMD Ryzen 7000 Series Processors Unparalleled Performance:12+2+2 Phases Digital VRM Solution Dual…

1 hour ago

Canon EOS 2000D Easy-to-use DSLR Camera Canon EOS 2000D

WHAT'S IN THE BOX - EOS 2000D body; EF-S 18-55mm f/3.5-5.6 IS II Lens; 2…

1 hour ago

MSI GeForce RTX 4070 SUPER 12G VENTUS 3X OC Gaming Graphics Card

Triple Fan: Three fans and a huge heatsink ensure a cool and quiet experience for…

1 hour ago