While Android has more users worldwide than Apple, and even ships more units than Apple does. Many Android OEMs actually lose money and sell their phones at much smaller margins of profit. According to Canaccord Genuity Apple made a whopping 94% of the profits last quarter, while only shipping 14.5% of the phones in the market.
While Apple sold 48 million (14.5%) this quarter, compared to Samsung’s 81 million (24.5%). Apple’s average selling price was $670, while Samsung’s was $180. This lead to Apple making 94% of the profits last quarter, with Samsung being a distant second at 11%. Yes that adds up to more than 100%, but that’s because most other manufacturer’s lost money.
They also had a record high rate of 30% of Android users switch over to Apple last quarter. While I can see the appeal of iPhones, they just aren’t for me. While this isn’t exactly good news for Android OEMs, who want to be as profitable as possible. It is still good news in a way for us, as our phones quality continue to go up with the prices going down. The shrinking margins give us higher quality phones, without paying the high margins iPhone users do.
Source: Apple Insider