Apple Dominates Smartphone Industry with 92% Share of Profits

Apple Inc., the Cupertino-based tech giant, has once again affirmed its market dominance. According to a Wall Street Journal report, the company secured 92% of the total profit generated by the world’s top eight smartphone makers, exhibiting a robust jump of 27% compared to the previous year. This is a significant stride even though it is responsible for less than 20% of the total smartphone unit sales.

In the final quarter of 2014, we reported that the iOS and Android platforms nearly monopolized the Operating System (OS) market with an impressive control of 96%. Diving deeper into the monetary division among these top-tier smartphone manufacturers reveals that Apple’s profit margin far surpasses its counterparts.

An interesting observation from the report is that Samsung and Apple together accounted for almost 100% of the total profits of the smartphone industry. But what about other key players in the industry? Take Microsoft, for example. The tech behemoth recently announced a write-down close to 80% of its smartphone value along with a global reduction of 7,800 jobs, mainly impacting its phone unit.

To further its competitive edge, Apple has recently rolled out an array of services like its Music streaming feature, crafted to ensure a more engaging user-device interactive experience.

Samsung, despite surpassing Apple in unit sales, especially in the first quarter of 2015, falls behind in real profit margins, where Apple demonstrates superior performance. Meanwhile, smartphone manufacturers predominantly based in China tell another story: many report either a loss when weighed against their operating costs or insignificant gains.

While the ever-changing landscape of smartphone manufacturing introduces new competitors, Chinese company Xiaomi is swiftly establishing a formidable presence. As this field continues to evolve, stay tuned to discover what intriguing developments lie ahead.

This article was updated in 2025 to reflect modern realities.