Smartphone Industry Earned $9.4 Billion in Profit Last Quarter—91% of Which Belonged to Apple

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Global smartphone profits reached $9.4 billion in total during the third quarter of 2016. Almost all of that loot filled the vaults of one company.

According to the latest research from Strategy Analytics, Apple captured a record 91 percent share of smartphone profits worldwide, leaving less than a billion dollars split between Huawei, Vivo, OPPO, and others.

“We estimate the global smartphone industry realized total operating profits of US$9.4 billion during Q3 2016,” Linda Sui, Director at Strategy Analytics, said. “Apple dominated and captured a record 91 percent share of all smartphone profits worldwide.”

Apple’s record is partially owed to Samsung, who blundered its biggest launch ever with exploding batteries and multiple recalls.

“Apple’s ability to maximize pricing and minimize production cost is hugely impressive and the iPhone continues to generate monster profits,” said Sui. “Huawei, Vivo and OPPO are the next three most profitable smartphone vendors globally this quarter, but they are still a long way behind Apple.”

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Last quarter Apple posted revenue of $46.9 billion. During those three months, Apple sold 45.5 million iPhones, 9.3 million iPads, and 4.9 million Macs

“Huawei captured 2 percent share of all smartphone profits, taking second spot overall, and becoming the world’s most profitable Android vendor for the first time ever,” Neil Mawston, Executive Director at Strategy Analytics, said. “Vivo and OPPO followed in third and fourth place and each took 2 percent global profit share.”

These companies now enter the crucial holiday quarter,

“Three of the world’s top four most profitable smartphone vendors are currently Chinese,” Sui noted. “Huawei, Vivo and OPPO have not only improved their smartphone product lineups this year; they have also enhanced their operational abilities and kept a tight lid on expanding distribution costs.”

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