World Wide Total Operating Income (Photo : Image by Romellaine Arsenio (writer) Data from Canaccord Genuity)
iPhone manufacturer Apple Inc. bagged 92 percent of the total operating income from the eight largest smartphone companies in the globe. Samsung Electronics took 15 percent.
Profits of Samsung and Apple totaled at 107 percent because the remaining six companies either broke even or lost money, The Wall Street Journal reported.
Apple's profits are stunning given that iPhone has less than 20 percent market share. While fewer units are being sold, Apple can afford to price their phones higher, giving them higher profit per unit.
Apple's point-of-difference is its iOs, which features an array of apps, security features, and other advancements. iPhone also has iCloud and Touch ID for more ways to share content and be secured. Lastly, it owns Apple music.
Its rival phones all use Google Inc.'s Android operating system making them less distinct and vulnerable to price competition.
The Android war has affected Samsung. With the entry of new, low-priced, and advancing Android phones, Samsung struggles to redefine itself, stand-out, and prove itself worthy of its price, CNET noted.
So far, Samsung has differentiated itself for its cameras with higher apertures for clear shots night and day, Super AMOLED display with higher pixel per inch ratios for vivid viewing, and fast-charging features.
Meanwhile, the remaining big names in the smartphone industry are less stellar in 2015. Blackberry broke even. Microsoft and Lenovo lost at -4 and -1 percent profit shares.
Nonetheless, Apple and Samsung have to prepare as sleeping giant Microsoft, gears up for a comeback. The brand is rumored to be developing revolutionized phones having their own iOs and sporting better cameras.
