Apple Continues to Dominate Mobile Profits
With its release of the iPhone 6, and iPhone 6 Plus, Apple has taken a disproportionate share of the mobile device market, with 92% of the profits in the mobile market for the first quarter. That number doesn’t exactly line up with the fact that one fifth of all smartphones solid throughout the world are Apple made, until you take into account the sheer profitability of those devices for their costs– Apple consumers are willing to pay the premium for the brand, the service, and the aesthetic appeal of these devices, and their business plan continues to pay off in a big way as the overall sales of mobile devices seems to actually be slowing despite its recent upward trends over the past 5 years.
Part of the reason for the slowing in mobile sales has to do with the proliferation of Android devices, which are more affordable and generally more “mod friendly,” as they can be customized with many different aspects and tools that Apple phones are traditionally locked out of. The ability to easily swap these phones between networks, and their sheer variety, have caused something of a cool down in smartphone sales between 2014 and 2015. This hasn’t done anything to slow down the amount of people going online through mobile devices, of course– there are more than ever connected, all across the globe, with an estimated 7 billion mobile subscribers globally.
Another aspect of Apple’s success, however, comes from exactly that level of variety. As more users see the differences between Android and Apple devices, along with the perceived value of the former’s wares, there has been a subtle theft of Android’s user base into Apple’s wheelhouse. Offering premium hardware with luxurious service contracts and warranties can be a large difference for users that may be used to purchasing phones from companies which may merely be a subsidiary of a larger, far more callous corporation that doesn’t offer the same perks.
It’s estimated that by the end of 2015, there will be 500 million smartphones purchased and held by consumers, all of which will be connected to Apple’s exclusive mobile carrier contracts and agreements. This means that Apple’s rise isn’t just profitable for the company, but for those who have played nice by way of making deals and maintaining exclusivity, which can vary from country to country.
Apple’s financial share also effects the development of mobile applications. Apple’s mobile app store is considered to be one of the financial powerhouses in the consumer electronics and technology market, with more users taking toward its merchant stalls as a way to generate considerable profits from consumers which have already demonstrated a willingness to pay premium prices.
As the mobile market moves forward, and more devices are used by more people, it’s possible that Apple’s power in the market may be diluted, particularly in light of oddities such as Apple’s Watch launch, but it isn’t likely to see strong competition in the near future.