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Apple accounts for 93% of smartphone industry profits

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Apple profits
Apple shattered records again this quarter.
Illustration: Cult of Mac

Things couldn’t be going better for Apple on the iPhone front. The company just posted the most profitable quarter ever in the history of corporations thanks to strong iPhone sales. And according to the latest report from Cannacord, Apple is basically the only company in the world making money off smartphones.

Apple accounted for 93% of smartphone profits in Q4 2014 reports Canaccord Genuity’s Mike Walkley who has also raised his target price on AAPL shares up to $145. That’s bad news for LG, Samsung, HTC and anyone else that makes smartphones, and to make it even worse, Cannacord estimates one third of all smartphone users will own an iPhone by the end of 2018.

See the full breakdown of profits per company below:

Samsung will provide bulk of Apple’s A9 chips for iPhone 6s

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A8 chip
Apple's A8 processor violated University of Wisconsin's patent.
Photo: Apple

Apple has been trying to wean itself from being dependent on Samsung’s smartphone components for years, but breaking up is proving nearly impossible to do.

According to a report from Recode, Apple is turning back to Samsung to make the next-generation A9 processors that will make their way into the iPhone and iPad later this year.

Apple could ship another 50 million iPhones by end of March

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Customs officials in China caught this man trying to smuggle 94 iPhones into the country. Photo: Sina News
Apple's going to be transporting more iPhones this quarter than even this guy. Photo: Sina News

Anyone holding onto the mistaken belief that Apple waited too long to launch a big-screen iPhone got their correction during Apple’s recent earnings call, when the company revealed it shipped a massive 74.5 million iPhones during the last three months of 2014 — representing more than half of Apple’s total revenue for the quarter.

iPhone 6 mania isn’t going away anytime soon, either, according to estimates provided by sources in Apple’s supply chain. Based on orders received, manufacturers reportedly expect Apple to ship more than 50 million additional iPhones by the end of March.

On this week’s CultCast: Apple’s best quarter ever and Indiana Jones … rebooted?

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Does Indiana Jones need a reboot?
Does Indiana Jones need a reboot? Photo: Disney

This week: Apple has its best quarter ever, Apple Watch is coming in April and the best parts of the iOS 8.1.3 and Yosemite 10.10.2 updates. Plus, Disney considers a reboot of the beloved Indiana Jones movies, and then things really go off the rails in Facts of Life, a new game where we mix real facts with fake ones, then guess which is which!

Our thanks to Varidesk for supporting this episode. With models starting at just $275, Varidesk is a high-quality, inexpensive way to get started with a standing desk. And you should absolutely check them out, because moving to a standing desk will change your life.

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Read on for full show notes.

Apple and Samsung are tied as world’s top smartphone vendors

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Apple and Samsung were dead even when it came to worldwide smartphone sales in the last three months of 2014, with each company selling 74.5 million handsets around the globe to capture a shade under 20 percent of the total marketshare.

For those keeping track at home, the last time the two were tied so evenly was Q4 2011 — shortly following the death of Apple co-founder Steve Jobs, and just after Tim Cook took over as CEO.

Apple is top smartphone maker in China for first time ever

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iPhone 6s
iPhone 6 is #1 in China. Photo: Jim Merithew/Cult of Mac
Photo: Jim Merithew/Cult of Mac

Apple took the top spot for smartphone sales in China last quarter for the first time in the company’s history, reports financial research firm Canalys.

To accomplish the stunning feat, Apple leapfrogged Samsung, Huawei, and Xiaomi, thanks to the sales of the iPhone 6 and 6 Plus. Apple is also selling more iPhones in China now than it is in the United States, even though the iPhone costs nearly double its nearest competitor. Canalys credits this to Apple tapping into trends like larger screens and LTE.

Apple now sells more iPhones in China than the U.S.

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iPhone 6s
Land of the rising sales. Photo: Jim Merithew/Cult of Mac
Photo: Jim Merithew/Cult of Mac

China may have been a bit late to the iPhone 6 party due to a drawn-out regulatory approval period, but it seems the wait was worth it — both for Chinese customers and Tim Cook’s wallet.

Ahead of what should be a blockbuster earnings call for Apple on January 27, UBS analysts are predicting that the holiday season will be the quarter in which China finally sold more iPhones than the U.S.

Crystal Baller: Dual-lens iPhone 6s, ARM-based Macs and 6 more crazy Apple rumors

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The Rumor: Your iMacs and MacBooks will be powered by ARM processors in 1 - 2 years/

The Verdict Not likely to happen yet. Ming Chi Kuo, aka “the world’s most accurate Apple analyst” has been wrong a time or two, and I think this is time he’s way off. Ditching Intel chips has been rumored forever. It still doesn’t make sense, as Apple would be sacrificing a lot of processing power for modest battery gains. It could happen in the next five years, but Kuo’s prediction that we’ll see an ARM powered MacBook in the next year sounds too soon to be true.


Get Wii-style bowling with an iPhone and Apple TV

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Now all you need is a wrist strap. Photo: Anuj Tandon
Now all you need is a wrist strap for your iPhone. Photo: Anuj Tandon/Rolocule Games

To get the fun of virtual bowling without a Wii, look no further than Bowling Central, a magical iOS app that lets you swing your iPhone around to send a virtual bowling ball slamming into all the pins at the end of the lane.

The game is powered by Rolocule Games’ motion-tracking technology, called “rolomotion,” which lets you swing your iPhone like a Wii remote. The gaming company’s two founders wanted to create a Wii Bowl-style experience, only with an Apple TV and an iPhone, and they won a 2014 Edison Award for their solution.

“We worked really hard to get the motion gaming controls right,” Rolocule’s Anuj Tandon told Cult of Mac in an email, “and getting the perfect controls took time. Not only … can you give accurate direction to the ball, but by twisting the wrist, the ball can be given a spin, just like real bowling.”

How Apple could hide a gaming joystick in future iPhones

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Coming soon to your iPhone Home button? Photo: Duncan C/Flickr CC
Coming soon to your iPhone Home button? Photo: Duncan C/Flickr CC

I’ve written on numerous occasions before about how we’re currently living through a golden age of iOS games, and apparently Apple agrees with me.

According to a new patent application published today, Apple may be investigating the possibility of building in a miniature joystick inside the Home button of future iOS devices.

Read on to find out how it could work.