While Apple may not be the top global smartphone vendor in terms of units sold, when it comes to the bottom line of profit it is wildly outperforming its market rivals, according to Canaccord Genuity estimates outlined in a report by The Wall Street Journal.In the first quarter Apple recorded 92 per cent of the total operating income from the eight top smartphone makers, representing a rise from 65 per cent year-on-year, Canaccord managing director Mike Walkley has estimated, the WSJ reported, with Samsung Electronics claiming 15 per cent.
The figures work out to more than 100 per cent as other makers broke even or lost money according to Canaccord calculations, the WSJ reported.
According to Gartner data released at the end of May, Samsung ranked as the number smartphone vendor in the first quarter in terms of unit sales, capturing a 24.2 per cent share of the worldwide smartphone market, with Apple in second position, claiming a 17.9 per cent market share.
As reported by the WSJ, the disparity between share of profits and units sales reflects Apple’s ability to command much higher prices for its phones.
While Samsung caters to all ends of the smartphone market, budget through to premium, Apple is focused on the premium end of the market.
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Following the release of Apple’s current-generation iPhone 6 and iPhone 6 Plus last year, Ryan Reith, International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker program director, noted upon release of the IDC’s fourth quarter figures that Apple was bucking the market trend with regard to average selling prices.
“Beyond the record-setting quarter, a few impressive things stand out with regard to Apple,” Reith commented at the time. “First, at a time when average selling prices (ASPs) for smartphone are rapidly declining, Apple managed to increase its reported ASPs in the fourth quarter due to higher-cost new models.
“Second, the growth of iPhone sales in both the US, which is considered a saturated market, and China, which presents the dual challenges of strong local competitors and serious price sensitivity, were remarkable.”
Reith additionally noted that sustaining this growth and higher ASPs in a year’s time “could prove challenging”.
As reported by the WSJ last week, Apple is reportedly gearing up for a record production run of its upcoming next-gen iPhone models.
