Apple Makes More Money Than All Other Smart Phone Manufacturers Combined
The margin on Apple’s iPhone products may be a lot higher than you previously suspected, as the company presently makes more than 92% of the operating profits in the smartphone industry while selling roughly a fifth of the phones.
This recent figure takes into account the top 8 smartphone manufacturers, putting Apple up against companies like Samsung and HTC. Out of this operating income bracket, Apple gets the overwhelming majority of the money coming back. Android and Windows phones carve up the remainder of the income disparity.
Also read: US Court Rules Apple Fixed Prices
There are hundreds of companies producing Android phones, and there are many more Android phones in the world. Despite Apple’s hefty 30% cut of profits in the application marketplace, the world is a huge place, and the company could eventually be displaced even on profits from hardware.
By maintaining high-profit margins for so long on its now-flagship product, Apple does have a lot of room to make changes to its strategy in the future if need be. It has a lot of room to move downward on price, and could relax the amount it takes from app developers to encourage innovation. However, if the present trend continues, Apple will have no incentive to make any changes at all, as the only better situation it could ask for would be to make 100% of the profits in the smartphone space, and have everyone else take a loss.
Images from Pixabay.