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Apple ships just 6% of mobile devices, rakes in 77% of profits

Apple made 77% of the mobile market profit while shipping only 6% of devices

Trace Hagan | Aug 8, 2012 at 5:29 pm CDT (0 mins, 55 secs time to read)

Apple knows how to do one thing right: make a profit. Showing that there is in fact an "Apple tax", a research firm found that Apple made 77 percent of mobile device profit while only shipping 6 percent of devices. Incredible. With that 6 percent of the market, they brought in 43 percent of the market revenue.

Apple ships just 6% of mobile devices, rakes in 77% of profits | TweakTown.com

Sure, Samsung has seen lots of success--they shipped twice as many smartphones in Q2 2012 as Apple did--but Apple made the majority of the profit. So, how do you determine who has been more successful, sales or profit? Clearly Samsung's per-device profit is much smaller than Apple's but most wouldn't have guessed that it was this much of a disparity.

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Raymond James Equity Research is responsible for compiling these numbers. Travis McCourt, who works for Raymond James, said: "Ultimately, profits are the feedstock of innovation; and, innovation drives profits. Until Samsung starts generating more profits than Apple, we would not be overly concerned with who has the unit share lead. Remember, HP and Dell still sell a lot more PCs than Apple sells Macs, but does it matter?"

Last updated: Apr 7, 2020 at 11:28 am CDT

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Trace Hagan

ABOUT THE AUTHOR - Trace Hagan

Trace is a starving college student studying Computer Science. He has a love of the English language and an addiction for new technology and speculation. When he's not writing, studying, or going to class, he can be found on the soccer pitch, both playing and coaching, or on the mountain snowboarding.

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