There are hundreds of companies manufacturing smartphones worldwide. Still, there is only one company in the world that is capable of making most of the revenue in the industry. In particular, 92% of the entire revenue generated in the global smartphone market belongs to Apple.
According to the recent report published by Canaccord Genuity, Apple accounted for 92% of the revenue generated by the smartphone industry in Q1 2015. For the sake of comparison, last year’s figures were around 65%.
The second best manufacturer of smartphones in this aspect is Samsung. Other companies broke even or got unprofitable over the reporting period.
At the same time, the imbalance gets even bigger. The thing is while Apple asks their manufacturing facilities to boost iPhone production to ship more devices worldwide, Samsung reports unfavorable forecasts for its operating profits. At the same time, HTC reports major losses while Microsoft reports an 80% decline in the cost of its mobile department purchased from Nokia.
We must confess that Apple’s performance does look stunning since Apple makes almost all of the money circulating in the global market of smartphones while backing only 20% of the global supply. This fact confirms that Apple is a true heavyweight and can set its own high prices.
It should be noted that other smartphone manufacturers mostly use Android by Google as the operating system to power their devices. That’s why it is harder for them to stand out from the crowd. That is why they are forced to cut the prices to boost the sales. On top of that, Samsung and HTC have made major strategic mistakes, which only underlined their position in the market.
Masterforex-V Academy reminds you that the situation in the global market of smartphones has been rapidly changing since Apple revolutionized the industry in 2007 by introducing iPhone.
