Professional Profiteer
Apple reportedly captured 92 percent of operating profits in the global smartphone market during the first quarter of this year, thanks to the huge popularity of the iPhone 6 and 6+.
Apple accounted for 92 percent of total operating profits achieved by the top 8 smartphone makers in Q1 2015, said the Wall Street Journal on July 12 (local time), citing a report published by Canadian financial company Canaccord Genuity.
Considering that Apple's weight was 65 percent in 2014, its achievement for this year can be interpreted to mean that the U.S. tech giant is maximizing profits based on the iPhone 6 and 6+.
Samsung Electronics represented 15 percent of total operating profits, which placed the firm in the runner-up position. Thus, the two companies' combined weight exceeds 100 percent, which means that certain handset makers must have operated at a loss. Taiwanese smartphone maker HTC reported quarterly operating losses of US$256 million (289.3 billion won) in Q2. Microsoft recently announced that it would lay off 7,800 people and mark US$7.6 billion (8.5933 trillion won) as operating losses.
In terms of the sales volume of smartphones, Apple's market share does not reach 20 percent. However, the iOS device maker made up 92 percent of total operating profits in Q1, since the iPhones are more expensive than Android phones.
The average sale price of the iPhones was US$624 (710,000 won) in 2014, whereas Android phones were sold at US$185 (210,000 won). It shows that Apple adopted a premium-centered strategy last year, while Android device manufacturers introduced different kinds of entry-level and mid-range smartphones, in addition to premium smartphones.