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Apple making 93% of profits of mobile industry

Paul McLellan

Active member
According to Cannacord Genuity, Apple is now making 93% of all the profit in the smartphone industry. Samsung's share is down to 9%. Let me see, 93% + 9% = 102% so the rest of the industry, in aggregate, is losing money. That is not to say that everyone is losing money, for example Sony was profitable last quarter.

Google is in the strange position that Android has over 80% market share versus iOS (everyone else such as Windows, Tizen and Blackberry are so tiny as to be irrelevant) but no profit in their partners. Apple has close to 20% market share and makes all the money. If you are an App developer which ecosystem do you regard as the most important? Not clear at all

Business insider piece here.
 

astilo

New member
If you are an App developer which ecosystem do you regard as the most important? Not clear at all

Business insider piece here.
About the specific question, the answer is pretty simple: both of them. As developer, I do not care too much about the smartphone industry share (even less I care about who is making more money), but I look mainly at the OS fragmentation and the success of their respective platforms (iTunes, Play Store, etc.).
 

benb

Member
A simple question would be what is the business model for all non-Apple smartphone manufacturers? A followup question is, is "burn cash and die" an acceptable business model in Asia, for some reason?
 

Mike Bryant

New member
Well the WSJ reports Xiaomi made US$566m profit last year so I'm tempted to think the original article you refer to is in error. Maybe it's 93% of the US market ?
 

Paul McLellan

Active member
Well the WSJ reports Xiaomi made US$566m profit last year so I'm tempted to think the original article you refer to is in error. Maybe it's 93% of the US market ?
No, it is all possible. Apple + Samsung can make over 100% of the profit with some of the other manufacturers also being profitable (Sony, Xiaomi, Lenovo) as long as the rest of the industry loses even more.
 
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