Numbers from media researcher IDC indicate that Samsung passed Apple during the first quarter to become the world’s largest smartphone manufacturer. Samsung shipped 42.4 million smartphones while Apple shipped 35.1 million.
However, “Cupertino retains another, far more lucrative title: Smartphone-market revenue leader,” reports AllThingsD. Data from Jupiter Research shows that Apple’s iPhone-based revenue was $22.7 billion, while Samsung’s revenue was $17 billion.
“So while Samsung may be winning on global smartphone shipments, Apple is winning on a more important metric: Smartphone profitability. And for a very simple reason: The company has the highest margins around,” suggests AllThingsD.
During the recent second-quarter earnings reports, Apple announced that its gross margin was 47.4 percent. Samsung’s gross margin was reportedly under 13 percent. “So, while Samsung is dominating smartphone shipments, Apple is dominating the smartphone industry’s pool of profits,” notes the article.
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