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  • iPhones Account for 92% of the Industry's Operating Income During the March Quarter

    Although the iPhone accounts for just 20% of the overall smartphone market, new research shows that Apple’s smartphone has accounted for 92% of the industry’s operating income during the March quarter. This number is up roughly 65% from a year ago according to Canaccord Genuity. As a point of reference, Samsung, which is Apple’s largest rival, claimed 15% of the income. Their combined figure surpassed 100%because other companies in the top eight either took a loss or broke even. Others such as BlackBerry held at zero, Lenovo hit -1%, Microsoft declined to a 4% share and even went as far as cutting up to 7,800 jobs and writing off its acquisition of Nokia.

    When it comes to Samsung, even the South Korean electronics manufacturer forecast a 4% drop in operating profits for the June quarter, which was attributed to a botched Galaxy S6 launch. Essentially, even though the phone is selling, Samsung produced too many regular S6 units and too few Edge models.

    As for Apple’s iPhone, even though it accounts for less than 20% of worldwide smartphone unit sales, it means that the company’s control of industry profits is likely due to higher margins off each customer. The iPhone’s largest competition comes in the form of Android devices, which because of their shared platform have to compete on either cost or hardware features, both of which reduce profit margins.

    Canaccord Genuity noted that the income estimate didn’t factor in privately-held firms like China’s Xiaomi but argued that such companies were unlikely to skew figures significantly.

    Currently, Apple is set to announce June Quarter financial results on July 21 with a conference call scheduled for 5:00pm Eastern. We’ll find out more information at that time.

    Source: Canaccord Genuity via AppleInsider
    This article was originally published in forum thread: iPhones Account for 92% of the Industry's Operating Income During the March Quarter started by Akshay Masand View original post
    Comments 1 Comment
    1. psxcancer's Avatar
      psxcancer -
      Microsoft: talk about biting off more than you can chew.