Apple made 92% of the profits in the smartphone industry during Q1 2015 – Samsung follows behind with 15%


While Apple had managed to rake in 65% of the smartphone industry’s operating income last year, this year it seems to have done even better as it has managed to take in 92% of all the profits made in the smartphone industry.

Wall Street Journal reports that despite their sales being only less than one fifth of the global smartphone sales, they have still managed to generate such a large profit. During Q1 2015, Samsung came in second with a profit share of 15%.

If you’re thinking how is it possible that both these companies have earned over 100% of the profit then let us explain. There are over 1000 brands in the smartphone industry currently and while Apple and Samsung have managed to generate high profits, the other players have either had losses or barely made even during the same time period.

The reason for such high profits for Apple is the high price for their smartphones. The report says that an average iPhone costs US$ 659 while the average Android smartphone costs just US$ 185. It is also important to note that Xiaomi and Micromax haven’t been included in the list however considering the strategy that both these brands follow in terms of pricing might mean that the results wouldn’t have been affected that much.

Apple is expecting their next generation iPhones to do even better this time around and they have asked their suppliers to manufacture upto 90 million handsets by the end of the year. More demand will lead to more sales and finally more profits for the company.

Author: Sandeep Sarma

Sandeep Sarma is a blogger and a freelance photographer. Apart from gadgets and phones, he also has a passion for movies and cars. He currently uses the S7 Edge as his main phone. Catch him on twitter at @sandeep9sarma