Apple’s quarterly results came through towards the end of last month, and many were a little shocked that Samsung managed so ship around double the number of smartphones achieved by Cupertino. Compared to many of its quarters, the 25 million iPhones sold was a pretty low number. But there’s very good reason why the company everyone loves to hate is not worrying just yet.
With the next generation iPhone about to be released, Apple still completely dominated profits. Out of all the mobile industry’s revenue, Apple controlled a 43% share. More importantly, it raked in 77% of the profits! Samsung (as expected) is its nearest competitor with 29% of the profits. (That’s 108% between the two companies thanks to stupendous loss from many of their competitors.) What that means is that despite shipping out 50 million smartphones over the three months ending in June 2012, Samsung still can’t get near Apple’s level of cash made (iPhone making 2.7 times more profit than Samsung’s smartphones).
Many I’m sure will be quick to jump on the “iPhone is too expensive” bandwagon, there are other facets to Apple’s success. Tim Cook’s role before being CEO was to streamline all the manufacturing processes to make them more cost effective, and fast. Cupertino also have “special” deals in place with many component makers. The company does admittedly charge a premium for its products, but if customers are willing to pay, I guess that’s never going to change.
It does make you wonder, with Apple making over 50% profit on the iPhone, why the company doesn’t charge less for it, enabling carriers to sell it cheaper. Food for thought, and most likely just wishful thinking.