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Apple records 92% of the total profits in the smartphone segment

<div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>Wealth management company Canaccord Genuity is estimating Apple's cut of the profits from the smartphone industry as a whole amounted to nearly 92 percent, up from 65 percent a year earlier. Even though the Cupertino giant has a global market share under 20 percent, it is able to capitalize on profits as its products command a higher price tag. In contrast, rival manufacturers such as Samsung (http://www.androidcentral.com/samsung), HTC (http://www.androidcentral.com/htc) and Xiaomi (http://www.androidcentral.com/xiaomi) make up the volume in the mid-tier and budget segments.</p> <!--break--> <p>According to Canaccord Genuity managing director Mike Walkley:</p>

<p>That high-end tier has really shifted away from Samsung to Apple.</p>

<p>Apple's stronghold on the high-end segment is backed up by Strategy Analytics' report, which states that the average selling price of an iPhone globally in 2014 was $624, whereas devices running Android were sold at an average of $185. This year, the global average cost rose to $659 thanks to the larger iPhone 6 (http://imore.com/iphone-6) and iPhone 6 Plus (http://imore.com/iphone-6-plus).</p> <p>Canaccord's estimates do not account for privately held manufacturers, such as Xiaomi and India's Micromax. Both vendors are at the forefront in terms of market share in their respective countries, but a bulk of the handsets sold by either vendor is targeted at the entry-level segment, which doesn't have a lot of scope for high margins.</p> <p>While Samsung and HTC cater to the high-end segment, the former forecast a decline in profits its Q2 2015 earnings (http://www.androidcentral.com/samsung-fails-meet-expectations-q2-2015-earnings-guidance-supply-shortages-blame) on account of supply shortages for the curved display Galaxy S6 edge (http://www.androidcentral.com/samsung-galaxy-s6-edge). HTC, meanwhile, witnessed lukewarm sales of its current flagship, the One M9 (http://www.androidcentral.com/htc-one-m9), which was received by many as an iterative update over last year's offering.</p> <p>Source: The Wall Street Journal (http://www.wsj.com/articles/apples-share-of-smartphone-industrys-profits-soars-to-92-1436727458)</p> </div></div></div><br clear='all'/>

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