Q3 2016 was not a great fiscal quarter for Apple Lossless Audio CODEC (ALAC), in terms of iPhone sales, but when it comes to profit, there has never been anything better for the company. According to smartphone market analysts, Apple collected 103% of the smartphone industry's profit, that is, all the profit, plus 3% which represents the losses of the others.
This impressive achievement comes in a fiscal quarter in which Apple's market share fell to its lowest value since 2014, just 12.1% of the total. Despite the fact that Apple sold fewer smartphones, Americans are the only ones who profit from this, the rest selling mobile terminals at a loss to customers around the world.
Just like last year, Apple shares the profit of the smartphone industry with Samsung, but although Apple then collected 90% of the profit, now it collects 103%, while Samsung only collected 0.9%. To be honest, Samsung's profit share is commendable, considering that the Galaxy Note 7 was a resounding failure, so here's how Samsung still made some money, a little to be honest.
Apple has collected ALL the profits of the smartphone industry
For several years now, Samsung and Apple are almost the only smartphone manufacturers that collect the entire profit of the industry, Apple always being in first place. The lowest percentage of the smartphone industry's profit collected by Apple has never fallen below 70%, a record that no other company will soon match.
"BMO Capital Markets analyst Tim Long estimates that Apple accounted for 103.6% of smartphone industry operating profits in the third quarter. Its share is over 100% because other vendors lost money in the business, resulting in Apple having more smartphone profit than the industry netted overall. In the year-earlier period, Apple grabbed 90% of smartphone profits. Among major vendors, Samsung was No. 2 in smartphone profits with a tiny 0.9% share."
Having said that, Apple doesn't really have to worry too much about the fact that iPhone sales are no longer as high as they were in 2015, because the profit still comes to them. Although Apple's competitors "steal" sales from the American company, the profit does not reach them.
