According to Strategy Analytics, global smartphone operating profit reached US$21 billion in Q4 2014. The Android operating system captured a record-low 11 percent global smartphone profit share during the quarter. In contrast, Apple iOS took a record-high 89 percent profit share. Apple iOS captured a record-high 89 percent profit share, up from 71 percent in Q4 2013.
Android mobile OS has 81.5% of the smartphone market in 2014, according to IDC. Apple's iOS has a 14.8% share.
IHS teardown shows the Apple iPhone costs $649 unlocked and cost just $200 to manufacture. The 32GB Samsung Galaxy S5 launched at $650 unlocked and cost $256 to manufacture.
Credit Suisse estimates that after development, marketing, and shipping costs are factored in, the 16GB iPhone 6 costs $350.60 to produce while Apple receives $599 on its retail price of $649, giving it a gross profit margin of 41.5%.
Last quarter, profit at Samsung's y reported a 64 percent drop in fourth-quarter operating profit for its IT and Mobile Communications division, which includes smartphones. Between the fourth quarters of 2013 and 2014, Samsung's global market share fell from 30% to 20%.
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