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iPhone Profits Stay Over the Top. Apple is The Leader of Smartphone Industry

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Apple is The Leader of Smartphone Industry

Apple is the concept of simplicity that works well on all levels. They knew who they were since day one and they struggled to keep their leading position over the last years. Although some of their products and services stuff entire pages of news with controversial information, Apple makes the greatest amounts of profit from what it offers to its consumers.

Apple sells high numbers of iPhones but it accounts for fewer than one in five smartphone sales around the globe. In spite of that, when it comes to making money, Apple is the expert. Sales strategies, PR strategies, good management, niche products, they all shape the idea of worldwide success.

The tech giant managed to get 92% of the entire amount of profits earned by the world’s top eight smartphone makers in the first months of 2015, according to Canaccord Genuity, reported by Wall Street Journal. Last year, the figures were less optimistic, as previous reports stated a share of 65% from the entire profits pie.

For the time being, Apple and Samsung make for more than 100% of smartphone industry profits, as other manufacturers only managed to recover expenses or even lost money, according to official calculations.

Apple’s big chunk of profits is surprising, considering that it sells less than 20% of smartphones, in terms of unit sales. The company manages to keep its profit levels high as it owns the premium fragment of the mobile devices market. They are best at selling their products for higher prices, obtaining wider profit margins. Also, they keep such a good management of consumer retention, that all Apple fans are willing to pay for what the “Apple of the revenue eye” has to offer.

Although Samsung is trying to reach the peak of success, it is caught in the middle by the premium manufacturer and the inexpensive Android rival, Xiaomi. Apple meets progressive  dominance due to its recent success in China. For the tech giant, the Asian market is a very challenging one, as it can increase revenues at a substantial level. The company stated that this year in April it managed to sell more phones in China than in the US for the first time in history. There was also reported a 71% yearly increase in revenue from iPhone sales in China. There is no doubt that Apple is the leader of smartphone industry and it plans to stay right there.

Image Source: pando.com

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