Apple rules the smartphone industry; takes 94% of global industry profits in Q3

Apple’s smartphone profits will be sky high this year compared to all its other competitors. In 2014, Apple raked in 85 percent of total smartphone market profits. This year, the Cupertino company is expected to account for an unheard of 95 percent of the market’s total profits.

Canaccord Genuity, Inc., a global investment banking and financial services firm, has revealed Apple took home a massive 94 percent of the smartphone segment’s third quarter income in 2015, according to Apple Insider. Apple accounted for an 85 percent share in the same quarter last year. The market performance of Apple has been phenomenal and the company owns 15 percent of the worldwide smartphone sales.

The next best performer in Q3 2015 is Samsung with an 11 percent share. Its profits have fallen by 42 percent since 2013, however. The research has also revealed other well-known smartphone makers like Microsoft, BlackBerry, Motorola (now owned by Lenovo), Sony, HTC and other brands didn’t achieve impressive profits in Q3 2015.

One of the reasons why other brands weren’t as profitable is because they failed to compete in the premium smartphone segment that includes handsets worth more than $400. Apple stacked-up huge profits because of the premium market iPhone 6 and 6 Plus handsets released last year.

There’s a huge demand for iPhone 6 models. The average selling price of an Apple iPhone is $670 whereas it was $180 for a Samsung in the third quarter of this year. The Cupertino company was able to record an enormous operating margin of 37 percent while other smartphone manufacturers either suffered losses or made minimal profits.

The newly launched iPhone 6s and 6s Plus was tremendously received by customers. Hence, industry experts expect Apple to continue its winning streak with the release of the new iPhone 6s models. There are claims market interest in the iPhone 6s and 6s Plus handsets cooled down a few weeks after their release, Phone Arena reported.

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