Apple has 94% of Smartphone Industry profits

Apple has 94 percent of the pie that is the Smartphone industry profits in the third quarter this year.

In a report by Investor's Business Daily, Canaccord Genuity analyst Michael Walkley said in his report Sunday that Apple got 94 percent of the profits in the smartphone industry, even though in terms of sales it only got 14.5 percent. This is the fourth consecutive quarter that Apple got more than 90 percent of the smartphone profits.

According to the International Business Times, following Apple is Samsung with 11 percent share but its profits dropped 42 percent since 2013. Meanwhile, Lenovo-owned Microsoft, BlackBerry, and Motorola, along with HTC and Sony didn't garner impressive profits during the third quarter this year. The major reason why other smartphone brands didn't earn as much is because they didn't concentrate in the premium smartphone segment, such as the over $400 handsets.

On the other hand, Apple raked huge income by selling iPhone 6 and 6 Plus, which was released in 2014. This means, even though Apple didn't have a lot of sales, it earned more because its phones are pricier than most other brands.

Apple Insider reported that Apple's chief executive Tim Cook said, "Momentum for iPhone 6 and iPhone 6 Plus remained very strong across the quarter, and we established a new launch record for iPhone 6s and iPhone 6s Plus near the end of the quarter."

"We exited the quarter with demand for our new iPhones exceeding supply, but we've made good progress with our manufacturing ramp in the initial weeks of October," he said.

Canaccord reported that Apple and Samsung earned a total of 105 percent of the smartphone industry profits because the rest of the brands lost money. Apple raked in $17.78 billion, while Samsung earned $2.08 billion in the third quarter this year. The entire industry earned $18.94 billion, while Samsung and Apple earned a combined $19.86 billion.