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iPhone Bags 92% of Smartphone Profits, Sells 14% of World’s Smartphones

By November 30, 2015March 7th, 2023Blog, Technology News

the_iphone_bags_92Steve Jobs, the late co-founder of Apple, indicated that when he started the company, he would have been happy selling a mere 1 percent of the world’s mobile phones. As Apple creeps up in popularity and now dominates 14 percent of the smartphone industry, the company is thriving more fiercely than Jobs could have ever imagined.

In the early days, Jobs focused on profit over market share, and this strategy seems to have paid off as the iPhone provides Apple with 92 percent of their operating income and is among the world’s top smartphone makers, even though they only corner a small percentage of the world market. For example, Samsung controls about 25 percent of the market but makes significantly less profit on each device. In contrast to Apple’s figures, Samsung’s phone sales only total 15 percent of their total sales, and -4 percent for Microsoft.

A report conducted by Canaccord Genuity tracked several years of activity in the mobile industry. The numbers are based solely on the sales of phones, and the report does not include sales through the App Store or iTunes.

Experts at Canaccord Genuity believe that Asian companies, such as Xiaomi, may begin to gain market share. In addition, some Asian companies are also trying to up their long-term profits on not only their smartphone sales, but app and service sales as well. However, China is currently second to North America sales of the iPhone (32 percent), which currently clocks as 22 percent of all phones sold in the country.

However small the iPhone’s market share, Canaccord Genuity believes that the larger screen of the iPhone 6 will attract Android loyalists. Their survey and report indicates that the larger screen makes the iPhone 6 more attractive, as do the upgraded features and increased power of the phone overall. Time will tell if this trend continues and the iPhone continues to increase both profits and market share.

Jason Manteiga

Jason J. Manteiga, Vice President of Olmec Systems, has been part of the company for over the past 20 years. He believes that having a great work environment and supportive team, is the ultimate key to success. Since being in the IT realm for over 25 years, Jason, along with Olmec Systems, has been on the Inc. 5000 “List of America’s Fastest Growing Private Companies” and Channel Futures MSP 501 “Top Managed Service Providers in North America,” along with other awards and nominations. Jason earned his Bachelor Degree in Information Systems from the New Jersey Institute of Technology. He also holds certifications in Microsoft MCSE, VMWare VCP, and Cisco CCNA. In his spare time, Jason is a contributor for The Center for Social & Legal Research (Privacy Exchange) and a member of the Morris County Chamber of Commerce. His hobbies include cycling and kayaking. He currently lives in New Jersey with his wife, two daughters and son.