Collectively android devices maybe leading the smartphone market but Apple is taking home all the profit. During this year’s first quarter Apple took the 92% share of total income collectively earned by eight different smartphone providers. The figure increased from 65% for Apple during initial quarter of last year. The latest figure is of quite significance as globally Apple sells only 20% of the smartphones from all the sellers. Behind Apple is Samsung at 15% and remaining smartphone vendors either suffer loss or are at breakeven.
The reason behind this phenomenon is that Apple has high prices which helps it to get a large profit chunk while selling little quantity of phones. The average sale price of iPhone is $624 globally as compared to $185 for other devices. Another reason for profit increase was high demand of iPhone 6 and 6 plus with big screens. As compared to previous similar quarter Apple sales were 43 percent higher for iPhones with higher prices.
Another reason for Apple’s success is due to unique product line as compared to Android phones. Having numerous models Apple sells only one smartphone and that is the iPhone. However, Android phone sellers offer variety of different phones ranging from cheap to expensive models. Leaving the two different platforms aside, Apple can ask for more price as its device is different from all the android devices available in the market.
Apple is grabbing the profit share when rival players are struggling hard to make profit and survive. Samsung has observed turn down in sale as well as market share facing tough competition from iPhone maker and also different Chinese vendors like Huawei and Xiaomi. The Korean company is expecting seventh profit decline in second quarter. HTC also revealed recently that it is expecting decline in revenues and even loss. Equal goes for the Chinese maker Xiaomi who can foresee missing of its target sales.
Apple has now the task to maintain the share as previously iPhone 6 with its big screen attraction helped a lot but still analysts think that the company would keep on dominating the industry profits as Apple’s dominance is quite difficult to overcome.
The reason behind this phenomenon is that Apple has high prices which helps it to get a large profit chunk while selling little quantity of phones. The average sale price of iPhone is $624 globally as compared to $185 for other devices. Another reason for profit increase was high demand of iPhone 6 and 6 plus with big screens. As compared to previous similar quarter Apple sales were 43 percent higher for iPhones with higher prices.
Another reason for Apple’s success is due to unique product line as compared to Android phones. Having numerous models Apple sells only one smartphone and that is the iPhone. However, Android phone sellers offer variety of different phones ranging from cheap to expensive models. Leaving the two different platforms aside, Apple can ask for more price as its device is different from all the android devices available in the market.
Apple is grabbing the profit share when rival players are struggling hard to make profit and survive. Samsung has observed turn down in sale as well as market share facing tough competition from iPhone maker and also different Chinese vendors like Huawei and Xiaomi. The Korean company is expecting seventh profit decline in second quarter. HTC also revealed recently that it is expecting decline in revenues and even loss. Equal goes for the Chinese maker Xiaomi who can foresee missing of its target sales.
Apple has now the task to maintain the share as previously iPhone 6 with its big screen attraction helped a lot but still analysts think that the company would keep on dominating the industry profits as Apple’s dominance is quite difficult to overcome.
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