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iPhone Accounts for Nearly 90% of Smartphone Industry Profits in Fourth Quarter

 

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According to a latest report from market research firm Strategy Analytics, Apple iOS captured a record-high 88.7% global smartphone profit share in Q4, 2014, up from 70.5% in Q4 2013.

On the other hand, Android took a record-low 11.3% profit share, down from 29.5% in the same quarter in 2013.

In terms of dollars, Apple's Q4, 2014 smartphone operating profits stood at $18.8 billion, up from $11.4 billion in Q4, 2013, while Android manufacturers had operating profits of just $2.4 billion, down from $4.8 billion in the same quarter the previous year.

"Apple’s strategy of premium products and lean logistics is proving hugely profitable," the research firm said, adding that "Android’s weak profitability for its hardware partners will worry Google."

Overall, global smartphone operating profit stood at $21.2 billion in Q4 2014, up 31% from $16.2 billion in Q4 2013.

 

Opinion:

Awfisch

Many people see this as a bad thing because it shows Apple charges absurd amounts for their phones. While they may be expensive, I think it's a good sign. It shows that people actually want to buy iPhones. Other manufacturers are making little to no profits because they have to lower their prices so much in order to get people to buy their phones. Some companies are selling their phones at a loss just to clear inventory. 

 

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