How Is Apple Taking the Lion’s Share of Smartphone Profits?

There are plenty of players in the smartphone market, but there’s only one king making the big money—and that’s Apple.

Despite Apple selling less than 20 per cent of the smartphones, the tech giant managed to rake in an astounding 92 per cent of global smartphone profits, which is $16.6 billion in total.

The profit is said to be largely due to Apple’s introduction of the larger screened iPhone 6 and 6 Plus models that became available last fall.

Meanwhile, the competition can’t keep up with Apple’s profit margins.

The other smartphone providers—which run mainly on the android system—are struggling to break even, the above video says. While Samsung sold more smartphones than Apple, they were mainly the much lower-priced models.

At least Samsung is making some profit. Blackberry made nothing, while Lenovo lost money last year.

According to AP, Microsoft is to cut over 7,500 jobs, and it is writing down the value of its Nokia phone division by a whopping $7.6 billion. What this means is that Microsoft has pretty much admitted that its venture to sell Windows smartphones has been a fizzer.

An Apple smartphone sells on average at $625, making them much more expensive than the average Android models that on average sell at $185.

The Apple iPhone 6 has proved to be a money spinner for Apple. (Image: Kārlis Dambrāns/flickr)

The Apple iPhone 6 has proved to be a money spinner for Apple. (Image: Kārlis Dambrāns/flickr)

This ability that Apple has to charge more for their phones means that they make a higher profit, while the numerous Android smartphone providers need to keep prices down if they want to compete.

According to the above video, the smartphone market is heading in the same direction as the PC market, where again Apple products dominate profits despite only providing 6 out of every 100 computers that are sold.

It’s not all smiles for Apple though. Its gadgets, such as the once-vaunted iPad tablet computer, have diminished, and it is believed that unreleased sale figures for the new Apple Watch are not so hot.

See the video below for some Apple facts:

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