Apple still gets most of the profits of the mobile phone industry when iPhone profit margin drops
Apple still gets most of the profits of the mobile phone industry when iPhone profit margin drops

Love to play computer games On November 15, it was reported by foreign media that TechInsights recently released a chart that revealed some interesting content about how Apple has priced iPhone for many years. The chart shows that the profit margin of the latest iPhone is 60%, and the previous peak is 74%. Although last year's iPhone X became news as Apple's first mobile phone with a price of $1000, the profit margin of the iPhone has been declining since the iPhone 3GS peaked in 2009.

According to the report, Apple has been adding more technology and higher quality parts to the iPhone, which is the reason for the decline in profit margins. Doesn't the Android camp always have technological progress and better quality?

It is reported that the models with low profit margins have always been the low-end products of the iPhone. For example, when the discontinued iPhone SE was launched in March 2016, its cost was $186.7, and the profit margin was 53%. In its heyday, 74 cents of every dollar Apple received from selling iPhones was profit. In recent years, a dollar of mobile phone sales can bring 60 cents to Apple.

Although Apple's profit margin declined, this did not prevent them from making money. The iPhone still made most of the profits in the mobile phone industry. Canaccord Genuity, an investment firm, said that although iPhone shipments accounted for less than 20% of the industry's total shipments, Apple accounted for 87% of the industry's profits.


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