Apple is reportedly dominating the smartphone industry's profits with a share of around 83.4 percent. According to Strategy Analytics, Apple posted an operating profit of $10.1 billion during the first quarter of 2017 and took 83.4 percent of smartphone profits globally. The Cupertino-based iPhone maker garnered 79 percent of smartphone market profits during the financial year 2016.
"In terms of profitability, Apple's domination and the market's polarisation between companies that make money and those struggling to turn a profit are becoming clear," an industry insider told Yonhap News Agency.
Samsung took 12.9 percent of profits during the January-March period. According to Yonhap, Samsung's mobile business earned $1.57 billion during the first quarter of 2017, down 21.9 percent from the same period a year ago. Samsung is reportedly struggling due to lack of a flagship smartphone during the first quarter of 2017 and a saturation of the market.
Samsung announced its flagship Galaxy S8 in March and the handset went on sale only in April. The company recently confirmed that the combined sales of Galaxy S8 and Galaxy S8+ have hit the 5 million mark, and has since rolled out the device to more markets like China. The report also notes that out of nearly 300 smartphone makers, only around 10 companies are actually generating profits. This further highlights how crowded the smartphone market is, and how difficult it is for independent smartphone makers to become profitable.