Apple’s iPhone accounted for nearly 90% of global smartphone industry profits in the last quarter of 2014. Its operating profit grew 65% from US$11.4 billion to US$18.8 billion from 2013 to 2014 while industry-wide profits grew 31% in the same period. Android hardware vendors (mainly Samsung) combined took a record-low 11% of the global smartphone profits, down from 29% a year ago. Blackberry, Windows Phone and others recorded profits close to zero that quarter.
27 Comments
Alex Winning-Browne
8/12/2015 11:49:31 am
It's disappointing to see previous mobile market leaders I.e Nokia, refused to develop into the smartphone world sooner. No doubt Apple and Samsung have successful business models, however, as Nokia follows with windows, perhaps their failure in the market is lack of first-mover advantage? Perhaps it's just technology.
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8/12/2015 10:17:44 pm
I strongly believe that the main source of Apple's smartphone dominance is from Apple's dynamic capabilities which mean an organization's ability to renew and recreate its strategic capabilities to meet the needs of changing environments. From late 2000s, Apple sensed need for smart phones with multimedia functionality because existing smart phones maintained a complex and unintuitive interface with limited functionalities. So Apple seizes this opportunity by upgrading the mobile phone to include an intuitive interface and multimedia functionalities containing the App store and iTunes. With this, Apple successfully entered the mobile telephone market. In addition, as a reconfiguring, Apple acquired mobile telephony capabilities and recombining them with existing design, interface capabilities and brand as well as cooperating with the music and telephone app industries. As a result, Apple's mobile phones with perfected design, functionality and interface become nearly 90% of global smartphone industry profits in the last quarter of 2014.
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Jason Chiang
9/1/2015 06:20:58 pm
Regarding Apple’s success and also an increase in their operating profit, I believe the main reason for their success is due to the aesthetic pleasure the design the iPhones brings and the ease of use. The evolution of Apple iPhone from 2007-2015 tends to be getting bigger and thinner but at the same time lighter too. Apple designs the iPhone to be sleek and eye catching, where upon walking into a cellphone shop the smart design will catch your attention instantly. Also the ease of use is a key success factor for the iPhone as kids aged 5 years old, to my grandma aged 80 will be able to learn the functioning of an iPhone within minutes.
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Kieran McBride
9/11/2015 07:02:34 pm
I tend to disagree with the idea that their success is due to it's aesthetic pleasure, although it may play a role, I believe that the first-mover advantage has played a bigger role in its success. Apple being the first to market the smart phone allowed them to take the lead in innovating what the latest technological advantages would be in each product release making them the chosen brand of phone for most buyers. As Apple took control of the customers through releasing the first smart phone, the other companies have been in a battle to try and take the loyal customers away from Apple.
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Kishan Patel
9/7/2015 12:07:01 pm
I would strongly consider and agree that the success and dominance in the smartphone market is due to Apple’s strong capabilities towards innovation, creativity and adaptability towards the on going moving and changing environment. Thus, Apple’s iPhone accounted for nearly 90% of global smartphone industry profits in the last quarter of 2014. Although samsung are evidently seen to sell more volume of smartphones, we note that apple still dominate the market share which incredible. It’s important to note that customer loyalty and brand loyalty such as Apple’s use of i-Tunes, Macbooks, Tablets and other devices have played a vital role towards Apple’s success of brand loyalty opposed to Samsung customers. It’ is important to note Nokia, Blackberry, Windows etc all have recorded profits close to zero that quarter. This is due to the lack of preparation towards the adaption to the environment which in contrast could result to become another example of a “kodak” disaster.
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9/8/2015 11:49:02 am
Apples smartphone dominance was created due to their aggressive capabilities to meet the needs of the ever-changing technological environment. From the beginning Apple has regularly developed and created new smartphones that meet the needs of the consumer, while keeping up with the development of technology. As well as keeping up with the technological advances Apple has also created a smartphone that is aesthetically pleasing to their consumers. Apple also developed the idea of the App store and iTunes therefore the Apple smartphone can be interpreted as having the full package. Furthermore this emphasises how Apple became the go to smartphone and claiming nearly 90% of the global smartphone industry, whilst other companies' industry profits have declined.
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Kimberley Ea
9/9/2015 02:27:34 pm
Apple’s success in dominating the smartphone industry is based on the creative, adaptive, innovators of the company. There is a reason why they have accounted 90% of the global industry in the last quarter of 2014 because they are focusing on consumers needs rather than just creating a phone for the sake of it. They realize that as technology advances, so too, do the consumers; therefore they need to obtain their attention by coming up with new innovative ideas like Siri and touch ID. Through this, Apple will continue to grow their profits as well as their loyal customer base due to the technological advances that consumers do not expect at the launch of the new iPhone conference.
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Terri Hastings
9/12/2015 03:05:41 pm
Despite Apple’s dynamic and aesthetic designs to their iphones, I believe that the cause to their success and market dominance in this market industry was their first-mover advantage. In spite of their competitors’ lack of ingenuity at the time, apple’s creativity and innovation had enabled them to adapt to the ever-changing technological environment. On top of that, their brand itself is a large intangible asset with significant market value, so their customers tend to be loyal. Apple, therefore must regularly develop innovative smartphones that meet the needs and wants of their customers to maintain their market dominance.
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9/14/2015 03:20:53 am
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Richard Koningham
9/14/2015 03:01:13 pm
Motorola is considered the pioneer of the mobile industry. By being an innovative late mover into the mobile phone industry Apple has managed to reshape the industry. Apple is now considered the pioneer of the smart phone, a subset of the mobile phone industry. Through being the first-mover into this new market they have established a premium brand that provides them with a loyal and growing consumer base.
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Ryan Drew
9/14/2015 10:31:40 pm
It is clear that Apple has dominance globally in the smartphone market. I believe this is due to the brand equity Apple has gained over many years through creativity, design and the user interface of it’s products. Many will argue that it is Apple’s technological innovation that is enabling them to lead the smartphone industry. It is clear however, through the ever-evolving technological innovations of other companies such as Samsung and Windows, that Apple is not leveraging their support only through these means. Instead I believe most of Apple’s real success lies in its brand value. While there are social and cultural benefits to consumers using and owning Apple products, they will continue to do so.
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Braden Feng
9/14/2015 10:37:54 pm
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Rohan Drummond
9/15/2015 09:08:22 pm
I think that Apple has done an extremely good job throughout their marketing both in their advertising and market research. They always provide simple but effective and memorable advertisements that position the brand well. They also always seem to know what consumers want deep down and are constantly innovating new features and products. The way they have positioned their brand and built such strong brand loyalty among consumers is extraordinary and Apple’s near 90% share of the global smartphone industry is a testament to that.
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11/23/2015 11:34:14 am
India, population 1.2 billion, is also the world’s fastest-growing smartphone market.Apple was the second most popular smartphone operating system with a 38.9 percent market share.
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