Anorak | Apple’s Only 10% Of The Phone Market But They Make 60% Of The Profits

Apple’s Only 10% Of The Phone Market But They Make 60% Of The Profits

by | 19th, March 2014

THE smartphone is really only just under 7 years old: that’s right, we’re just coming up to hte 7 th anniversary of the release of the Apple iPhone. And this smartphone is now the fastest adopted technology of all time: there were a billion of the damn things made and sold last year. But the truly remarkable thing is that while Apple only has around 10% of this market they have been able to capture 60% of all of the profits of the entire sector.

Which is, when you think about it, pretty remarkable :

Indeed, since the launch of the iPhone[3] the net profits earned by the collection of protagonists shown was $215 billion[4]. 60% has been earned by Apple, a newcomer to the market. That figure is also consistent on an ongoing basis, having reached 60% as early as 2011 and remained in a band around that figure since.

Actually, that’s friggin’ amazing. But the story doesn’t stop there. Over and above the profit that they’ve managed to capture there’s the amount that we, the consumers, have been able to enjoy as we play with our new shiny shiny. We must indeed gain more value from our iPhones than we pay for them precisely because if we didn’t we wouldn’t bother to buy them. This value over and above what we actually pay is called the consumer surplus. And sadly we’ve no real way

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Posted: 19th, March 2014 | In: Money, Technology Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink