Apple Takes a Dramatic Lead in Smartphone Industry’s Profits

Despite selling less than 20 percent of smartphones in terms of unit sales, Apple recorded 92 percent of the total operating income of smartphone sales for Q1, up from 65 percent last year. Apple and Samsung lead the industry while other phone makers broke even or lost money, according to Canaccord Genuity research. Apple has recorded such a significant lead because of higher prices per unit. This has forced rival brands, that mostly run on the Android operating system, to compete by cutting prices. Continue reading Apple Takes a Dramatic Lead in Smartphone Industry’s Profits

Apple Forecast: Will iPhone 4S Lead to 60 Percent of Industry Profits?

  • According to Canaccord Genuity analysis of Apple’s third quarter, the company “captured more than half of the handset industry’s overall operating profits — 52 percent…And it managed it with only a 4.2 percent global handset unit market share,” reports The Wall Street Journal.
  • “With the iPhone, Apple is doing to the smartphone business what it has done to the PC business with the Mac: Generating a disproportionate share of profits relative to revenue,” suggests the article.
  • With other manufacturers faltering and iPhone 4S sales soaring, Apple may hit 60 percent of the industry’s operating profits soon.
  • According to AllThingsD: “…with the iPhone 4S the top-selling smartphone at AT&T, Sprint and Verizon, and its international rollout in full swing, it seems pretty clear Apple has a very good chance of hitting that big number — and soon.”