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Apple Makes 77% Of Industry's Operating Profits, Ships Only 6% Of All Mobile Devices

All businesses want to make money, but it takes one like Apple to produce just 6% of a market's items and earn 77% of the industry's operating profits. We are of course talking about the mobile market, where the iPhone and iPad make up just 6% of the smartphone and tablet market, yet bring in 43% of the industry's total revenue. Apple itself, with such a small percentage, shows its might by taking home 77% of the industry's total operating profits. Thats, right Apple is that profitable. Granted other manufacturer's such as Samsung have seen great success as well, pushing nearly double the amount of smartphones as Apple, but the profit margin per phone is of course far smaller.

Raymond James Equity Research, which compiled the figures, has turned the original idea of the market leader on its head. Travis McCourt, who works for Raymond James, said it best "Ultimately, profits are the feedstock of innovation; and, innovation drives profits. Until Samsung starts generating more profits than Apple, we would not be overly concerned with who has the unit share lead. Remember, HP and Dell still sell a lot more PCs than Apple sells Macs, but does it matter?" It all depends on what happens with the iPhone 5 and iOS 6. With both being described as more of the same and not very inspiring we can't say for sure, however the fact it's an Apple product will more than likely guarantee it's a success.

Everyone knows the iPhone and iPad are top of the range mobile gadgets and that Apple don’t design things for a price but for a function. However new research brings into question how inflated these prices are. New figures from analysts at Raymond James Equity Research shows that Apple are indeed raking it in and making a lot more money on each product sold than any other competitor.

Hexus.net

Posted by | Wed, Aug 08, 2012 - 04:09 PM

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