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Apple iPhone Beats Android to Smartphone Riches

Amazingly, Apple iPhone beats Android companies in terms of how much money it makes.

When looking at the smartphone market, something fascinating is happening. In terms of how much money each company makers, Apple iPhone beats Android giants like Samsung and Huawei. Moreover, it beats them comfortably.

According to market research firm Counterpoint, over the last two years, Apple has raked in the majority of revenue in the smartphone world. Indeed, with the iPhone, the company has made 66% of the hundred billion dollar operating profits seen across the industry.

Related: Will the iPhone 12 Smartphone Sell 100 Million Units?

During the last holiday quarter (Q4 2018), Apple accounted for 80% of all profits in the market. Importantly, the company is expected to have similar profits this holiday season.

Apple iPhone Beat Android in profit

Counterpoint data shows Apple makes the majority of profit in the smartphone market (Image: Counterpoint)

How Apple iPhone Beats Android

What’s most startling about this statistic is that it is a stark contrast to smartphone sales figures. Samsung and Huawei are the two best selling smartphone manufacturers in the world.

According to data from research company Canalys, Samsung sold 78.9 million smartphones during the third quarter or 22.4% of the market. Huawei moved 66.8 million (19.0%), and Apple 43.5 million (12.3%).

This data points to an obvious question: How can a company with just over 12% of the market make the majority of the money?

All the Money

Well, there are several things working in Apple’s favor that allow the company to take two-thirds of all the money earned in the industry.

Canlys smartphone sales

Canalys shows Android brands dominate smartphone sales. (Image: Canalys)

Firstly, the company has a range that is almost exclusively flagship or at least cost more than $500 to buy. In other words, Apple only sells expensive phones. Samsung and Huawei sell a lot of mid-range and low-end models. Those huge shipment sales don’t tell the whole story.

It is also worth noting that Apple is notable for selling devices for a high margin. Cupertino is able to build them relatively cheaply and sell them for high prices. When Apple sells a device, it makes more profit than when its rivals sell a device. Amazingly, the company has still managed to maintain a level of quality with its hardware.

So, Apple iPhone beats Android in terms of profit. We were shocked by the information, did it also come as a surprise to you? Let us know in the comments below.

About the author

Luke Jones