Estimates Show That the iPhone has 103.6% of Smartphone Profits in Q3

[Maura]

According to BMO Capital Markets analysts, via 9to5 Mac, Apple is estimated to have recorded a huge smartphone profit share in Q3 of 103.6% of total smartphone profits. Rival Samsung is way behind Apple in second place with 0.9% of total profits. Apple’s figure is higher than 100% because most of the smartphone vendors such as LG and HTC have recorded losses. This is the first time ever that Apple has had profits exceeding 100% as a result of the Galaxy Note 7 recall by Samsung and the popularity of the iPhone 7. Apple’s share is usually around 90% to 95%, and in the same period a year ago Apple had 90% profit share.

It’s a different story as far as units sold are concerned, however, with Samsung selling 21.7% of smartphones sold, and Apple selling 13.2% of smartphones sold. The fact that Apple has managed to keep the average iPhone selling price high has ensured that its profits have soared this quarter, despite selling many fewer units than Samsung.

Source: Apple iPhone captures 103.6% of smartphone industry profits in Q3, according to analyst estimates

 

[scifan57]

One of the main reasons that Samsung leads in the number of smartphones sold is that Samsung has smartphones at every price point while Apple only produces top of the line smartphones. From the point of view of the shareholders, profits made are more important than numbers sold.

 

[KevinJS]

It's a pity LG can't seem to make a go of it. Their products are top notch. I'd take LG over Samsung every time.

 

[scifan57]

It's a pity LG can't seem to make a go of it. Their products are top notch. I'd take LG over Samsung every time.

It hurts all the manufacturers if everybody's engaged in trying to improve sales by undercutting the competition's prices. This has resulted in almost all manufacturers hovering on the edge of insolvency.

 

[KevinJS]

It hurts all the manufacturers if everybody's engaged in trying to improve sales by undercutting the competition's prices. This has resulted in almost all manufacturers hovering on the edge of insolvency.

Agreed. It's not going to happen but it would be good if Apple would licence iOS to LG. Then iOS could take on Samsung at the low/mid end of the market without Apple having to put their name on the hardware.

 

[scifan57]

Agreed. It's not going to happen but it would be good if Apple would licence iOS to LG. Then iOS could take on Samsung at the low/mid end of the market without Apple having to put their name on the hardware.

If Apple were to ever do that, there would have to be strict controls on just what a licensee could do with iOS in order to avoid the fragmentation that is the bane of Android.

 

[KevinJS]

If Apple were to ever do that, there would have to be strict controls on just what a licensee could do with iOS in order to avoid the fragmentation that is the bane of Android.

True. There would also be controls on where the products could be pitched in the market, so that non-Apple iOS devices weren't in direct competition with Apple.

So if LG were to be licenced, they could make a version of the 4s to 5c but anything higher in their range would have to run Android. Obviously, their hardware couldn't be hobbled and would have to be able to run the latest iOS version, so they still wouldn't be TOO far downmarket.