Why IPhone Have More High Profit?
All along, Apple has combined most of its industry profits with high retention rates so that they can maintain high sales and profits. At the same time, Apple can also fund its R&D work and support its application ecosystem to maintain its leading position. Apple can make the most money and sell more iPhones, which in turn increases its installed base, resulting in more revenue and profits. This virtuous circle is still continuing.

Analysts at Canaccord Genuity estimated the proportion of profits for most major smartphone manufacturers. According to analysts’ calculations, although Apple’s quarterly profit ratio fell to 72% in September 2016, Apple’s profit is still three times that of Samsung in the just-concluded quarter of September 2017!

Let us look at this group of data. Apple’s profit share in 2014 was 77%, and its share of revenue was 42%. By 2015, their share of profits reached a peak, reaching 90% with a revenue share of 51%. In 2016, these two figures were 83% and 50% respectively. In the three quarters ended in 2017, Apple’s quarterly profit share was 84%, 68%, and 72%, respectively, and revenue share was 51%, 38%, and 42%.

In contrast, Samsung’s quarterly profit share in 2017 was 15%, 25%, and 24%. The revenue share is 29%, 37%, and 35%.

In addition to Apple and Samsung, analysts also mentioned that Huawei is another smart phone manufacturer that can maintain profitability. However, in the analysis process, they also ruled out some of China’s smart phone manufacturers, because they did not provide their own financial information, but analysts also mentioned that, like Vivo and OPPO, they generally maintain a break-even, Therefore, they will not affect the ratio of Apple’s and Samsung’s share of profits and income.

It is because of Apple’s ability to keep the iPhone selling well for a long time – to obtain more income and profits – to spend more money on R & D – to maintain the leading position in the ecosystem – to increase the user base – to sell more iPhones to earn more This kind of virtuous circle of money, so, iPhone continues to occupy the dominant position in the profits of smart phones does not make people feel unexpected.

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