Apple Grabs 91 Percent Of Global Smartphone Profits According To Strategy Analytics

One of the criticisms against Apple and its iPhone line is that its handsets are often behind the technological curve in terms of hardware and features. Be that as it may, no other company makes more money from smartphone sales than Apple. Heck, it's not even close. The latest research from Strategy Analytics shows that global smartphone profits topped $9 billion in the third quarter of 2016, almost all of which went into Apple's pocket.

“We estimate the global smartphone industry realized total operating profits of $9.4 billion during Q3 2016. Apple dominated and captured a record 91 percent share of all smartphone profits worldwide. Apple’s ability to maximize pricing and minimize production cost is hugely impressive and the iPhone continues to generate monster profits," said Linda Sui, Director at Strategy Analytics.

iPhone 7

The next three most profitable smartphone makers behind Apple are Huawei, Vivo, and Oppo, each of which profited around $200 million during the third quarter. Another $200 million in profit can be attributed to all other smartphone makers combined, including Samsung, Apple's chief rival in the mobile phone space.

What we're seeing here is the genius of Steve Jobs still at play. There are arguably better, more advanced smartphones at any given point in time than whatever the flagship iPhone is when making the comparison, but no company does a better job than Apple at marketing its handsets. Some of the tricks are subtle, such as limiting the new "Jet Black" color option for the iPhone 7 to the 128GB model and above. It's a clever way of getting consumers to pay $100 more on a handset than they might otherwise be inclined.

As for the competition, keep an eye on Huawei. It captured 2 percent of all smartphone profits to take second place behind Apple and is now the world's most profitable Android vendor. Strategy Analytics credited Huawei's rise to its efficient supply chain, sleek products (check out the Honor 8 for an example), and effective marketing.