In a testament to Apple’s (AAPL) brand strength, a report by Canaccord Genuity estimates that the company took home 92% of the operating profits in the global smartphone market during the first quarter. High margins on the popular iPhone dwarf the income from Samsung and other Android (GOOGL) phones.
The profit market share “demonstrates how successful Apple has been with its iphone 6 and 6+ launch,” said Angelo Zino, analyst at S&P Capital IQ.
Despite the 92% profit market share, Apple sold just 18% of the total phones in the first quarter, meaning that customers are paying a much higher premium for the brand. Samsung was the leader, selling 25% of smartphones globally. Lenovo, Huawei, Xiaomi and LG each had about 5% of the market share.
Either iPhones are far superior to Android phones or Apple is far more efficient at manufacturing or they are grossly overpriced.
Given the premium Apple has charged historically for its products, I’d say its the latter.
Apple sold overpriced iMacs for years with miserable 15″ screens when the cheapest PC came with a 17″ monitor for hundreds less. Apple also bundled a horrible hockey-puck mouse that was cute but an ergonomic disaster.
Someone call Bernie Sanders and point out that 92% of smart phone profits are going to one company!!!