Samsung May Sell More Units, But Apple Makes More Profit [Report]

Samsung May Sell More Units, But Apple Makes More Profit [Report]

Winning.

While Apple and Samsung duke it out in Northern California this week, it makes sense to take a little time comparing the two on sales numbers, units shipped, and profit made. And while many folks these days like to bring up the fact that more Samsung devices are sold than iOS devices, those same folks are missing the boat.

According to a report from Raymond James analyst Tavis McCourt, via website AllThingsD, Apple’s iOS devices are making its company a ton more profit than Samsung’s devices are. Let’s take a look at the numbers.

The report says that Apple only shipped around 6 percent of the smartphones in the US this past quarter, but brought in about 43 percent of the revenue for the smartphone industry as a whole. That revenue has generated an amazing 77 percent of the entire industry’s operating profits, as well, even as the media and “men on the street” point to the lull in current iPhone sales in the lead up to the release of the highly-anticipated iPhone 5.

Here’s a pretty chart that tells the same story, only with pictures.

Samsung May Sell More Units, But Apple Makes More Profit [Report]

That graph on the left? Shows visually how Apple owns almost half the revenues of the smartphone industry as compared to everyone else in it. The chart on the right, of course, shows an ever-increasing pink bar of Apple’s industry earnings before interest and taxes.

So, the next time someone tells you that Android (or Samsung, depending) is selling so many more devices than Apple as a way to convince you that Apple is losing the smartphone wars, you can just point to the pictures above and be done with it. Because, honestly, it’s profit that drives the industry, not just the number of low-end devices sold within it.

  • intocad

    I think your source of information/results are a little skewed. I think the part Apple should be concerned with is the number of Android based mobile products being sold, not just Samsung. While I can see how the sales of the Galaxy S3, and the release of the Galaxy Note 10.1 tablet certainly should cause AppleApple concern. The other Android devices are ahead of Apple in the global mobile payment transactions by having the use of NFC (near field communication) in many of the Android devices that have already been using this Nexus phone, Galaxy S3 and Note (with Ice Cream Sandwich) to name a few. Check out the money.usa.com

  • Rob LeFebvre

    I think your source of information/results are a little skewed. I think the part Apple should be concerned with is the number of Android based mobile products being sold, not just Samsung. While I can see how the sales of the Galaxy S3, and the release of the Galaxy Note 10.1 tablet certainly should cause AppleApple concern. The other Android devices are ahead of Apple in the global mobile payment transactions by having the use of NFC (near field communication) in many of the Android devices that have already been using this Nexus phone, Galaxy S3 and Note (with Ice Cream Sandwich) to name a few. Check out the money.usa.com

    Thanks for the comment. I think the source of information is actually quite good, but I totally agree that we all can have a different interpretation of the numbers within it. Still, it’s good (from my perspective) to see Apple so dominating the industry both as a profit-maker AND as the one company that makes half the smartphones out there, competing with many other companies.

  • hanhothi

    You are missing the POINT, (missing the boat means it sailed already and you were left behind). Android sells more and so is more popular. These data just shows crApple drastically overcharges. Who benefits from crApples rip off prices? Not the stockholders, that is for sure as the dividens are crAp!

  • benandarchie1

    You are missing the POINT, (missing the boat means it sailed already and you were left behind). Android sells more and so is more popular. These data just shows crApple drastically overcharges. Who benefits from crApples rip off prices? Not the stockholders, that is for sure as the dividens are crAp!

    I agree. look at the prices of the iPhone 4S unlocked: $649, $749 and $849, that is way overpriced! The samsung galaxy s3 cost about $600 unlocked and obviously its going to most more to make than the titchy iPhone. Last holiday season, apple got 8.3 billion in profit from Q4. Samsung made 2.9billion profit and they sold more phones. Apple is ripping us off people! (samsung is better :D)

  • Andrew Newsome

    i’m not sure how screwing people out of more money is something to praise, rather than popularity.

  • mr_ahh

    There is a reason why Apple can make so much money it’s the brand recognition and willingness for members of the cult to praise it’s name so loudly. Here we have a thread of people happy to say yes we over pay and yes our Apple makes ALL that money.

    The question I always ask to you fools is “so how much stock do you own?”

    Apple makes a mint, & so does Samsung does it help keep my lights on and water running? Nope it does not.

    “”We didn’t need to,” Schiller said. He read from several rave reviews of the iPhone and iPad, explaining that such stories did a better job than advertising to build buzz.” <– You see this? I hope you guys get more that free devices for helping with all that profit, your constant praise is helping mold the future. I mean when you can blatantly say all Samsung phones are crap and the iPhone/iPad is the second coming you have an issue deep inside that needs resolving.

  • Piyush Om Dadhich
  • markrlangston

    As I alway say, just because Burger King has more diners than In-N-Out does not make it the “king of burgers”. They just have more locations.

    The other factor here is that a good majority of Android phones are being given away. There are tons of buy-one/get-one deals for Android phones or promos to get several free if you sign up for a particular plan.

    But not the iPhone. The price is usually the same across the board save for now as Sprint and others begin dropping the price to make room for the new iPhone (pretty sure they’ll drop the numbers like they did with the iPad).

    It’s also my belief that similar to the computer market Apple isn’t in this game to have the most, just be the best.

About the author

Rob LeFebvreAnchorage, Alaska-based freelance writer and editor Rob LeFebvre has contributed to various tech, gaming and iOS sites, including 148Apps, Creative Screenwriting, Shelf-Awareness, VentureBeat, and Paste Magazine. Feel free to find Rob on Twitter @roblef, and send him a cookie once in a while; he'll really appreciate it.

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