NewsReport: Apple Earns 92% of Smartphone Profits

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A new article in The Wall Street Journal says that while Apple has a 20 percent share of smartphone sales, it earns 92 percent of smartphone industry profits. Those figures come from Canaccord Genuity managing director Mike Walkley, who added that Samsung generated 15 percent of smartphone industry profits. (The two companies generated more than 100 percent of industry profits because several other firms lost money.)

Neil Mawston, executive director at market researcher Strategy Analytics, estimates that more than 1,000 companies sell smartphones, many of them located in China. Apple is able to generate much higher profits than most of the other manufacturers because its phones command a higher price. The average selling price for iPhones last year was $624, compared to $185 for Android phones.

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