Apple Grabs 104 Percent Of The Smarphone Profit Pie

iphone-7-case

Apple is estimated to be making 103.6 percent of all the profits in the smartphone market. The seemingly-odd figure is a combination of the methodology and the financial bloodbath caused by the exploding Samsung Note 7.

The 103.6 percent figure comes about because, unlike with revenue, it’s very much possible to make negative profits.

In this case (the third quarter of 2016) the rest of the industry did so badly that if you take out Apple’s performance, the smartphone market actually lost money.

The gulf was so dramatic thanks to Samsung, which was still the second most profitable manufacturer, but made up just 0.9 percent of the industry’s overall profit. That’s largely because it had to withdraw the Note 7 completely, cutting its profits by 96 percent from the same period last year.

The 103.6 percent is certainly a freak figure that’s almost certain to be a one-off, but it does show just how big the profit margin is on iPhones, particularly given that Android handsets are outselling iPhones by a ratio of more than seven-to-one.




4 Responses to Apple Grabs 104 Percent Of The Smarphone Profit Pie

  1. The markup on Apple products are insane! The iPhone’s components are like 150USD. Then they sell them north of 700 (even if subsidized). Just their cables and adaptors, which probably cost 3-4 USD to make, they sell for 49 USD to 19 USD respectively (though they’ve marked down recently because of customer complaints, which is surprising since I thought the iSheeple willingly throw away money for iToys without thinking).

  2. So hilarious when apple fans cite these figures as some sort of evidence of apple’s superiority. It just shows how amazingly overpriced iphones are that they can take that much profit from the pockets of the %15 of smartphone owners who bought an iphone.

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