Apple mobile sector outshines rivals in revenue and profits
It appears that Apple is still outshining rivals in the mobile space when it comes to revenue and profits even though in the last quarter, rival Samsung shipped roughly 50 million smartphones which was roughly double that of Apple sales, and despite being the largest quantity of handset shipped by a vendor in a single quarter.
According to a report over on AllThingsD, that above 50 million figure comes via IDC, but doesn’t matter because when you take into consideration the broader mobile industry, Apple continues to outshine its rivals in both operating profits and revenue due to higher gross margins on the iPhone and Apple iPad.
Although Apple shipped roughly 6% of the industry’s tablets and smartphones in Q2, according to Travis McCourt, an analyst for Raymond James, the company garnered about 43% of the industry’s revenue, and generated a staggering 77% of the industry’s operating profits, and even in a seasonally weak iPhone sales period.
Thus although old Sammy handsets are outselling the iPhone at a ratio of 2 to 1, and although probably seen as a bit of a victory over their rival, it isn’t a financial victory, as although old Sammy may hold the mobile industry’s crown, Apple still rules the roost when it comes to that very important metric, profit.
The analyst wrote that until Samsung can generate more profits than Apple they are not overly concerned with who has the unit share lead, ultimately profits are the feedback of innovation and innovation drives profit.
It shouldn’t really surprise anyone that although Samsung sold more smartphones that Apple sold iPhones, Apple still pulls in more revenue and profits considering what Apple charges for their iOS gear, and of course Apple’s loyal following.