Apple’s Share of Smartphone Industry Profit Rises to 92%, Despite iPhone Representing Less Than 20% of Sales

A new report out over the weekend by Canaccord Genuity estimates that Apple has recorded a 92 percent share of the world’s entire smartphone market in the first quarter of 2015, which is up from 65 percent a year earlier. The company managed to do so on less than 20 percent of actual smartphone sales, which the Wall Street Journal accounts to the company’s “ability to command much higher prices for its phones.”

Behind Apple was Samsung with a total of 15 percent of the smartphone market, with the two combining to tally up for more than 100 percent of the industry’s profits, “because other makers broke even or lost money, in Canaccord’s calculations.” In the early days of the iPhone, Canaccord estimates that Nokia was holding two-thirds of the smartphone industry’s profits, but by 2012, Apple and Samsung shared the industry’s profits at a nearly exact 50/50 split.

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“The dominance of Apple is something that is very hard to overcome,” said Denny Strigl, former chief operating officer of Verizon Communications Inc. “Apple has to stumble somehow or another, and I don’t think that’s going to happen.”

Canaccord contributes Apple’s bigger-than-ever market dominance to a combination of increased iPhone sales and higher prices for the bigger-screened iPhone 6 and iPhone 6 Plus released last year. A year before, an iPhone sold at an average of $624 — compared to $185 for Android-running smartphones — according to data collected by Strategy Analytics. By the end of 2015’s first quarter, Apple had sold 43 percent more iPhones than the year before and at a higher price of about $659 thanks to the bigger screened models.

Apple’s dominance doesn’t seem to be slowing down as we move closer to the launch of the next generation of iPhone, with the company reportedly ordering a record-breaking amount of units for the so-called “iPhone 6s” launch later this year. Its rivals won’t be threatening to take any of its market share at the moment, either, with companies like HTC and Samsung reporting quarterly losses and “disappointing profits” and Microsoft just last week laying off 7,800 employees, primarily in its smartphone business.


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