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Apple is Still the Most Profitable Smartphone Company in the World

A lot of people have started discussing the downfall of Apple due to lower phone sales because of the fact that this is the sort of thing that could potentially end up allowing its competitors to obtain a larger share of the market. With all of that having been said and now out of the way, it is important to note that Apple is actually still the most profitable smartphone company in the world, and lower sales than its competitors is actually now doing all that much to damage its position in this regard.

The first thing that we need to look at in this context is Apple’s share of global smartphone shipments, as highlighted by CPR, of which it only has 13%. This is a very small number, but regardless of that it has a 40% share of total revenue thanks in no small part to the high cost of its devices. If you ever had any doubt that Apple sells its phones at quite a hefty markup all of your doubts will go away once you find out that this 40% share of total revenue has resulted in Apple getting an incredible 75% of total profits in this market.

This just goes to show how valuable the iPhone is to people, and how the vast majority of Apple competitors are operating on razor thin margins in order to own the market share that they currently own. The way that Apple does things is usually quite different since the tech giant clearly doesn’t mind selling fewer phones as this does not impact their bottom line with all things having been considered and taken into account. This isn’t even the biggest share Apple has had, since in the same quarter last year the tech giant had an astonishing 86% of total smartphone profits so if anything this year has been a relatively low performing one for them.



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