Why should Apple obtain 91% profit of global smartphone industry?

A survey made by Strategy Analytics indicated that the total profit of global smartphone market reached $ 9 billion by Q316 and Apple accounted for 91% of this share. It meant that iPhone 90% of global profit with 10% of global sales.

It reported that iPhone got $ 8.5 billion operating profit in Q3, accounting for 91% of operating profit in global smartphone industry. The rest of top 4 profitable manufacturers are from China, they are Huawei, vivo and OPPO.

It is unclear how this research institute calculated the operating profit. Apple announced its net profit was $7.8 billion in Q3.

Linda Sui, chief of Strategy Analystics, claimed Apple predominated over operating profit in global smartphone industry. Its pricing and costing impressed the public and they will contribute more profit to Apple.

Apple released iPhone 7 and iPhone 7 Plus in Q3, selling at least $649. The cost of iPhone components costed $224.9, according to IHS. It meant that Apple can make much gross profit from iPhone.

It is worth noting that iPhone sales declined three quarters in a row. Gartner released the lately statistics showing that the sales of iphone in Q3 were 43 million devices, down to 11.5% of quarterly market share.

Neil Mawston, CEO of Strategy Analytics, claimed that the sales of iPhone increased a bit after the recall of Note 7.

Though Huawei, Vivo and OPPO ranked top 2, top 3 and top 4 in profit of Q3, their market share and operating profit are just a small portion in comparison with Apple’s. Mawston claimed Huawei contributed $200 million in global operating profit in Q3, obtaining 2.2% global market share. Vivo and OPPO respectively obtained 2.2% of global market share as well.

Strategy Analytics also showed that Android operating system is still the most profitable, the second comes iOS, Tizen ranks in fifth. Microsoft and Blackberry platforms rarely make profit.