The iPhone’s market share is down around the world, but you know what’s up? Its profitability related to other smartphones.
In fact, according to a new report from BMO Capital Markets analyst Tim Long, Apple accounted for 103.6 percent of all smartphone industry operating profits in the third quarter of 2016.
If you’re wondering how Apple managed to gain over 100 percent of the profits, it’s apparently because not only was Apple astonishingly profitable in its own right, but other vendors in the market actually lost money in the quarter.
While I’m not an accountant, and therefore still scratching my head at the non-theoretical realities of having more than 100 percent of a particular market, it still shows just how far Apple is ahead of the competition.
By comparison, Apple’s closest rival (and we mean “rival” in the loosest sense) when it comes to profitability is Samsung, which took home the no. 2 spot with 0.9 percent of profits. Samsung was hurt in the quarter by its disastrous Note 7 launch and subsequent multiple recalls and eventual cancellation. LG and HTC were both money-losers in the quarter.
To give an idea of how this doesn’t directly correlate with sales, Samsung came first place in sales with 21.7 percent, Apple in no. 2 with 13.2 percent, and Huawei in third position with 9.7 percent.
Yesterday, a new report from Strategy Analytics noted that iPhone worldwide market share fell to 12 percent worldwide, while Android phones captured 88 percent of global smartphone shipments.