Apple takes 92% of all smartphone companies' profits

By: Rob Price

NEW YORK: Apple has a tiny market share of the smartphone industry -but it is making some truly massive profits.According to research firm IDC, the Cupertino company was responsible for just 18.3% of smartphones shipped globally in Q1 of 2015.

Despite this, it is taking the vast, vast majority of profits in the industry -a staggering 92%. As reported first by the Wall Street Journal, Canaccord Genuity analyst Mike Wakley estimates that Apple took well over 90% of all profits in the smartphone business in 2015 Q1, with Samsung coming in a distant second, at 15%. Yes, that adds up to 107%, because other handsets makers have either failed to make a profit or actively lost money.

It's a stark illustration of how popular the iPhone 6 has been -in Q1 of 2015, Apple was responsible for 65% of smartphone industry profits.

That said, the 92% is actually a decline for Apple: In 2014 Q4, Canaccord Genuity estimated Apple was responsible for 93% of industry profits. But this (tiny) drop-off is to be expected: iPhone sales are cyclical, and 2014 Q4 benefited from Apple's record-breaking iPhone 6 launch. In fact, that Apple has been able to sustain these profit levels is a testament to just how well the iPhone 6 is selling.

Looking forward, it seems that Apple expects the good times to just keep on coming.