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,
HTC and
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 and
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 on account of supply shortages for the curved display
Galaxy S6 edge. HTC, meanwhile, witnessed lukewarm sales of its current flagship, the
One M9, which was received by many as an iterative update over last year's offering.</p> <p>Source:
The Wall Street Journal</p> </div></div></div><br clear='all'/>
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Source:
Apple records 92% of the total profits in the smartphone segment
