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Apple received 92% of global operating profit from smartphone sales

Thanks to flagship smartphone the iPhone 7 and iPhone 7 Plus, Apple managed to increase its share in the revenue in the global smartphone market. In the final quarter of 2016, the share of the “Apple” giant, accounted for only 18% of the global sales of smartphones in natural terms, but the company has collected 92% of total revenue in the industry. Talking about it, analysts at Canaccord Genuity.

Apple lion generates income industry has for a long time. In particular, the rate of more than 91% observed for the past seven quarters. In some cases, Apple has got more than 100% of industry revenue that Canaccord Genuity is explained by the unprofitability of other manufacturers.

Having considered the indicators of the six known manufacturers of smartphones, experts have found that only four of them made a profit. In addition to Apple, among the profitable brands experts call the Samsung, Sony and BlackBerry, noting that the canadian manufacturer has got less than 1% of industry revenue, Japanese 1%, Korean – 9%.

The total figure for the four vendors is more than 100% as already mentioned above reason, the other manufacturers were operating at a loss. In particular, among the brands with negative profitability, analysts have called Microsoft and LG.

The analyst noted that many manufacturers that use Android, are in a disadvantageous intermediate position between Apple, with its expensive models and cheap mass brands like Xiaomi and Huawei. “It’s kind of a trap, – said the expert. Such brands are many, including a few hundred in China.” Even Samsung at some point managed to offer a successful smartphones in all price segments now experiencing problems with the influx of competitors.

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Speaking of Apple, the analyst also noted that its recent success, she partly owes the recent failure of Samsung, which had to withdraw from the market its flagship smartphones Galaxy Note 7 out of defects in their batteries.

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