Apple Rakes In 92% Of The Smartphone Industry’s Operating Income – And Will Continue To Do So

Ramish Zafar

Talk about doing some things right. While Apple often gets criticized by a lot of quarters for using the mantra of innovation more than implementing it, one thing can not be denied. The Cupertino manufacturer is known for its well designed devices that follow its own set of rules, rather than lean on what the market demands. It is due to this that when Apple chooses to make even the most minimal of upgrades, such as finally launching a larger screened iPhone 6 Plus last year, they're well talked about and described as big steps. But looks like Apple's got a lot of things going for it as the Cupertino manufacturer is now reported to be raking more than 90% of total profits from global smartphone sales.

Apple Is Now The World's Largest Smartphone Seller In Terms Of Revenue

When word surfaced earlier this month that Apple was looking to place a record number of orders for its upcoming iPhone 6S Duo, many were left surprised. After all, 'S' upgrades in the iPhone lineup do not feature any major changes from previous flagships and rather focus towards introducing some features and refining those already present. But Apple seems to have its cards right in order, as now folks over at Cannacord Genuity now estimate that out of some 1,000 global smartphone manufacturers, Apple rakes in a massive 92% of overall profits.

In 2015's first quarter, Apple recorded 92% of total operating income from the world's top smartphone makers, while Samsung, considered by some to be its main rival, managed to rake in 15%. When it comes to unit sales, Apple moves only 20% of the total devices sold globally. Selling its devices for prices much higher than its competitors, while keeping overall costs low seems to do Apple a whole lot of good. When competing against an Android world where devices often fail to differentiate, primarily because of the high end specification race and Google's Android being almost identical on every device, Apple has managed to carve out a nice top tier place for itself; something which Samsung is still struggling with, despite a highly revamped Galaxy S6 Duo launch this year.

When it comes to average device prices globally, Apple's handsets sell at nearly three times the average price of their Android counterparts. Global Strategy estimates that the iPhone's average price last year globally was about $624, which, when compared to the $185 for Android devices, marks a huge step towards explaining Apple's staggering revenues. That, and the fact that over the past couple of year's Android maker have seen their image as premium, top tier devices fall down, owing primarily, once again to Apple's decision of launching only flagship smartphones. In fact, when the Cupertino manufacturer tried to move towards mid-level devices with the iPhone 5C, market response wasn't all that favorable either.

So as we head towards the 2015 iPhone 6S Duo launch, Apple's position in the smartphone world seems as strong as ever. And with new features such as Force Touch expected on this year's launches from the Cupertino manufacturer, it doesn't seem to be going anywhere. After all this, one wouldn't be surprised if Apple's chosen to order 90 million iPhone 6S units. We wouldn't want the Cupertino manufacturer to make the same mistake Samsung did with its Galaxy S6 Edge, which suffered from supply shortfalls; whether deliberate or mistakenly, only Samsung knows. All eyes on the iPhone 6S launch this September folks. Stay tuned, we'll keep you updated and let us know what you think in the comments section below.

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