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Apple smashes Android in smartphone profit war

Apple smashes Android in smartphone profit war

Android has fallen well behind Apple in terms of profitability, despite having a much greater share of global smartphone shipments.

androidpit smartphone money 8
Android's profits have taken a big hit. Should you be worried?/ © ANDROIDPIT

A new report from market analysis firm Strategy Analytics shows that the global operating profits for all smartphones hit $21 billion in Q4 2014, but that Android's share of the spoils stands at only 11.3 percent. Apple's iOS platform leads the way with 88.7 percent of profits from global smartphone sales - $18.8 billion to Android's $2.4 billion.

While Apple always led Android in terms of smartphone profitability, it'll worry Google that Apple's profits went up by 18 percent year-on-year, while Android's dropped by approximately half from $4.8 billion to $2.4 billion.

androidpit smartphone profits q4 2014
Android took a beating from Apple this year. Can it turn things around?/ © Strategy Analytics

Strategy Analytics said that iOS' success comes down to Apple's "strategy of premium products and lean logistics". If by 'logistics' it's referring to things such as operating system updates, then you only need to look at Android Lollipop's sluggish roll-out to see that they may have a point.

The report also said that Android's poor profitability may lead manufacturers towards other mobiles operating systems such as Microsoft, Tizen or Firefox.

Are these figures signs that the Android Empire is crumbling? Would you jump ship if a worthy new operating system arises, or would you go down fighting with Android?

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  • It takes a REAL MORON to say 'Apple vs Android'. Android is an OPERATING SYSTEM. Apple is a COMPANY. Sheesh, iSheep. 😠 BESIDES THAT, OF COURSE Apple's going to have a high 'profit margin'. Their products are MORBIDLY overpriced! There are Android phones in ALL price ranges, thus, making them affordable to people of EVERY economic status. iDiots. 😬

  • Considering the price off ALL apple products and workings conditions, is it a surprise they make huge pofits?

  • It's a real shame, too, because next to Lollipop, iOS 8 is total garbage.

    I only ever have Nexus devices, though, because I want those fast updates and no rubbish. Most of my friends with other Android phones love the clean look and fast response of pure Android.

    Also, Apple's retail operation is fantastic! You get to go into a beautiful, neat clean store with friendly enthusiastic employees and play with gadgets.

    If you're interested in a Nexus device, you have to buy it on the Internet, usually on faith. Where can you go and play with a Nexus 6 or 9?

  • well if they keep taking too long to roll out new System upgrades.then God help android.lollipop is way behind.Most of the phones don't even have them.they should start focusing on quality rather than quantity. Market share should not be their prime concern.

  • ljhaye Feb 28, 2015 Link to comment

    This is a tough call for the Android OEMs as they have to make money in order to invest in R&D. Outside of Samsung who else makes any money in Android? Samsung just bought Loop pay to compete with google wallet and apple pay can any of the other OEMs afford to innovate at the pace of Samsung or Apple? I doubt it and thats why profitability matters. Samsung is now doing their chip design in house leaving Qualcomm but the other OEMs can't afford that differentiator so they become commoditized...

  • Android for Life! ,,😁

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