With a 92% profit share, Apple is the king of smartphone industry

The average iPhone price of $659 is over three times higher the $185 average price of an Android smartphone.

Despite only selling around 20 per cent of the world’s smartphones, Apple and its iPhone made 92 per cent of the total operating income in the first quarter of this year, up from 65 per cent a year earlier.

WHILE just about all of us have a smartphone from many different brands, only one company is making almost all the industry’s profit. Apple is able to make the majority of the profits in the smartphone industry by charging higher prices for its devices than its competitors. Now, Canaccord Genuity managing director Mike Walkley, has confirmed the role that iPhones play in Apple’s success as covered in a report by the Wall Street Journal.

Although Apple sells less than 20% of smartphones globally in terms of unit sales, its share of profits is miles ahead. The 92% of profits reported this year marks 27% annual increase in profits for Apple.

Coming in second, Samsung took 15 percent of profits in first quarter.

The WSJ reports that both Apple and Samsung have more than 100% combined profits because the other players in the smartphone market either broke even or recorded losses. Most smartphone makers use Google’s Android operating system, making it harder for them to differentiate their offerings, and prompting many to compete on prices.

It is no secret that Apple’s iPhones are hot sellers.