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Apr 12, 2001
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The latest numbers from Canaccord Genuity reveal that Apple accounted for 93% of mobile profits during the fourth quarter, leading the financial services company to raise its price target on Apple shares from $135 to $145. The firm also predicted that iPhone adoption could grow to 650 million users through 2018 as more smartphone owners upgrade to the iPhone 6 and iPhone 6 Plus.

Canaccord-Mobile-Profits.png
Barron's shares Canaccord Genuity analyst Mike Walkley's note to investors:
We believe the strong iPhone 6 replacement sales should continue during C'15, as we estimate only 15% of the current estimated 404M iPhone installed base has upgraded to the new devices. We also anticipate continued strong share gains for the larger screen iPhones from high-tier Android smartphones during C'15 driving strong growth in the iPhone installed base and model the iPhone installed base growing to 487M subscribers exiting C'15 up 20% Y/Y.
Apple and Samsung combined to capture all profits in the mobile industry during the fourth quarter, as competitors including Microsoft, BlackBerry, HTC, Sony, LG and Lenovo either broke even or faced a loss in value share during the three-month period. Apple captured 79% of mobile profits for the entirety of 2014, with a margin of 37% on operating income of $44.6 billion.

Article Link: Apple's Share of Mobile Phone Profits Rises to 93% on iPhone 6 Launch
 

2457282

Suspended
Dec 6, 2012
3,327
3,015
I find it amazing to see that with all the competition (even to the point of selling at a loss), apple is still able to maintain those kinds of margins. It speaks (at least to me) how well Apple does at all levels (hardware, OS, Apps, Marketing). Really impressive.
 

512ke

macrumors 6502a
Sep 10, 2003
577
186
What is that, Apple makes 13X more profit than all its mobile competitors combined?

Granted I suck at math but the competitors are sucking at business at least compared to Apple.
 

sundog925

macrumors 6502a
Dec 19, 2011
948
971
This post is poorly written. You're talking about financials, and then predicted adoption rates in the same copy. "Apple and Samsung combined to capture all profits in the mobile industry during the fourth quarter..." WTH does this even mean? They joined forces? Basically copying the linked to article and barely changing it into your own words doesn't constitute as journalism. You took the whole context of the original article and skewed it, and not in an understable way. Next time just link to the original article and save us the headache, NOT your own article on MR. That's just redundant.
 

ArtOfWarfare

macrumors G3
Nov 26, 2007
9,544
6,042
The firm also predicted that iPhone adoption could grow to 650 million users through 2018

This is the most amazing part to me.

The world population in 2018 will be 7.2 B people. 1 in 11 (9%) people in the entire world will be using an iPhone according to this firm.

It's estimated that in 2018 half of the world will have an internet connection. So about 18% of those people will have iPhones.

It just seems amazing that so many people will be able to afford one.
 

i.mac

macrumors 6502a
Dec 14, 2007
996
247
What is that, Apple makes 13X more profit than all its mobile competitors combined?

Granted I suck at math but the competitors are sucking at business at least compared to Apple.

It is easy to see that samedung and M$ commercials making fun of apple customers really paid for them.
 

KdParker

macrumors 601
Oct 1, 2010
4,793
998
Everywhere
That is crazy that MS is doing all this to break even.

If they want to continue in the mobile field, then they need to breakdown and spend a large sum of money on marketing. I mean double the budget for windowsPhones and dedicate 50% of the entire budget (if not more) to marketing.

There phone and OS are fine for most users, but nobody knows about product or they are priced too high. Why chance a windows phone when you can get the industry standard for the same price?
 

Apple Trees

macrumors 6502
May 28, 2013
261
0
Wow this is pretty incredible. It makes one wonder why the rest of them are still even bothering. Apple has even managed to start eating into the small share that Samsung had carved out for themselves. If current trends continue they might possibly become one of those 1-5% companies as well.
 

gnasher729

Suspended
Nov 25, 2005
17,980
5,565
What is that, Apple makes 13X more profit than all its mobile competitors combined?

Granted I suck at math but the competitors are sucking at business at least compared to Apple.

Well, they make about 11x more profit than Samsung according to these numbers. Because Microsoft has minus 2% profit and the rest has nothing, that's 13x more than the rest. As always, Apple and Samsung together make more than 100% :eek:
 

elmateo487

macrumors 6502a
Jun 12, 2008
873
530
..... You took the whole context of the original article and skewed it, and not in an understable way. Next time just link to the original article and save us the headache, NOT your own article on MR. That's just redundant.

Sounds like you need a new website to troll man. Do me a favor and choose a website I don't frequent.

Here you go.

http://www.gq.com/about/forums
 

IJ Reilly

macrumors P6
Jul 16, 2002
17,909
1,496
Palookaville
That is crazy that MS is doing all this to break even.

If they want to continue in the mobile field, then they need to breakdown and spend a large sum of money on marketing. I mean double the budget for windowsPhones and dedicate 50% of the entire budget (if not more) to marketing.

There phone and OS are fine for most users, but nobody knows about product or they are priced too high. Why chance a windows phone when you can get the industry standard for the same price?

For Microsoft, breaking even is actually an accomplishment. They lose money on new products routinely.
 

Mattsasa

macrumors 68020
Apr 12, 2010
2,339
744
Minnesota
I think Apple should add a 4" iPhone 6- to make up for that other 7%.

Ha! I would have bought it!

This is the most amazing part to me.

The world population in 2018 will be 7.2 B people. 1 in 11 (9%) people in the entire world will be using an iPhone according to this firm.

It's estimated that in 2018 half of the world will have an internet connection. So about 18% of those people will have iPhones.

It just seems amazing that so many people will be able to afford one.

This is truly insane numbers. Crazy 1 in 11 people in the world owning an iPhone
 

CEmajr

macrumors 601
Dec 18, 2012
4,448
1,228
Charlotte, NC
Microsoft seems to be going with the Xbox strategy of taking heavy losses in order to gain a foothold in the market. Problem is it doesn't look like Apple is going to give away their position like Sony did with video games.
 

Michael Scrip

macrumors 604
Mar 4, 2011
7,922
12,470
NC
There are over 60 smartphone OEMs in the world.

Only 2 are actually making any serious money across the industry... although a handful of them make some profits every once in a while.

How is this sustainable?
 

62tele

macrumors 6502a
Apr 11, 2010
739
674
That is crazy that MS is doing all this to break even.

If they want to continue in the mobile field, then they need to breakdown and spend a large sum of money on marketing. I mean double the budget for windowsPhones and dedicate 50% of the entire budget (if not more) to marketing.

There phone and OS are fine for most users, but nobody knows about product or they are priced too high. Why chance a windows phone when you can get the industry standard for the same price?

Marketing won't save Microsoft. They were very unprepared for the post pc, mobile era. They have no mojo, no momentum and no foothold. It's iOS or Android. MS doesn't get a halo effect from its pc business and there is no compelling reason for mobile users to leave iOS or Android.
 

JoEw

macrumors 68000
Nov 29, 2009
1,583
1,291
Marketing won't save Microsoft. They were very unprepared for the post pc, mobile era. They have no mojo, no momentum and no foothold. It's iOS or Android. MS doesn't get a halo effect from its pc business and there is no compelling reason for mobile users to leave iOS or Android.

The CEO knows this, Microsoft has great strength in their services & cloud platforms. I have Office365 and love it.

This is why Windows 10 will be free for so many, Microsoft knows the future isn't about platform but services on numerous platforms.
 

newagemac

macrumors 68020
Mar 31, 2010
2,091
23
Microsoft seems to be going with the Xbox strategy of taking heavy losses in order to gain a foothold in the market. Problem is it doesn't look like Apple is going to give away their position like Sony did with video games.

Microsoft seems to be shooting for Android not Apple since the Lumia devices have started concentrating on the low to mid range. Once they take some of Android's marketshare, developers will at least start paying them some attention and it snowballs from there.

I would be worried if I were Google because Microsoft has deep pockets and the only thing propping up Android is cheap prices. Apple seems to be untouchable at this point at the high end.
 

Michael Goff

Suspended
Jul 5, 2012
13,329
7,421
Marketing won't save Microsoft. They were very unprepared for the post pc, mobile era. They have no mojo, no momentum and no foothold. It's iOS or Android. MS doesn't get a halo effect from its pc business and there is no compelling reason for mobile users to leave iOS or Android.

Can we drop this post PC nonsense?
 

tdale

macrumors 65816
Aug 11, 2013
1,293
77
Christchurch, N.Z.
What is that, Apple makes 13X more profit than all its mobile competitors combined?

Granted I suck at math but the competitors are sucking at business at least compared to Apple.

That's correct. Out of every dollar profit, Apple makes 93 cents.

A few short years ago, Apple made more then everyone else put together, so let's say that's 55%. This last year it is 79%, of which the last quarter was 93%. That's the iPhone 6 period,mor shall I say the "finally give us normal sized phones" you would expect the 93% to hold, but it will be in the Samsung S6 period, so will drop a few tads. The global market share will rise and keep rising steadily I feel

----------

Can we drop this post PC nonsense?

Agree, how many here have no PC or no Mac?

----------

Microsoft seems to be shooting for Android not Apple since the Lumia devices have started concentrating on the low to mid range. Once they take some of Android's marketshare, developers will at least start paying them some attention and it snowballs from there.

I would be worried if I were Google because Microsoft has deep pockets and the only thing propping up Android is cheap prices. Apple seems to be untouchable at this point at the high end.

My thoughts exactly. They are not shooting for Apple, but Apple user stay loyal, integration, etc. MS is bringing that to the table, so that will, help Lumia, and Un help Android.
 

tdale

macrumors 65816
Aug 11, 2013
1,293
77
Christchurch, N.Z.
Wow this is pretty incredible. It makes one wonder why the rest of them are still even bothering. Apple has even managed to start eating into the small share that Samsung had carved out for themselves. If current trends continue they might possibly become one of those 1-5% companies as well.

They already are if Apple makes 93% this quarter and the rest in total make 7%. Seems Samsung is at or close to 7%. THe rest make a small profit or a loss equals zero.
 

JHankwitz

macrumors 68000
Oct 31, 2005
1,911
58
Wisconsin
This 93% is the TRUE measure of 'Market Share'. Number of units built and/or sold has little if any value. Profit is what business is truly all about. And for those that don't like it, they have the choice to buy the low-margin products. Everyone gets what they want or deserve.
 

KdParker

macrumors 601
Oct 1, 2010
4,793
998
Everywhere
Marketing won't save Microsoft. They were very unprepared for the post pc, mobile era. They have no mojo, no momentum and no foothold. It's iOS or Android. MS doesn't get a halo effect from its pc business and there is no compelling reason for mobile users to leave iOS or Android.

Not alone, but awareness combined with some strategic partnerships ( ie with carriers) to get their phones out there will help.

Most users really don't care what OS. If the phone works well and gives you what you need, (calls, internet access and apps, etc....) then most people are ok.

The problem with Windows Phone is that users will have to actively seek them out and and least here in the states users are directed to Apple or Android phones by the carriers.
 

ksav34

macrumors newbie
Feb 10, 2015
2
13
Is the loss taken on hardware indicative of the money made in data mining for these companies? That has been a major selling point for Apple devices is they do not access your data, where all the other OEMs (perhaps not Microsoft) have their own apps on the phone and could easily benefit from the data on those phones.

Just a thought, but this could be an indication that consumers really do value their privacy.
 
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