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New Goldman Chart Shows How Apple Seizes Mobile Phone Profits

In my recent article for The China Tracker, “Apple, Google To Battle In China”, I predicted how Apple’s iPhone would be much more profitable than the Android platform even though unit sales would be lower.

This view is corroborated by this chart (second on the page) posted on Business Insider, which is now capturing close to twice the profit of the rest of the industry combined, even though unit sales numbers are only 3% of the total market sales worldwide.

I expect these numbers to be similar for the China market, and they show why Apple will be in a virtuous cycle in the China market, since iPhone and iPad sales will drive increased marketing expenditure in China, putting extreme pressure on Apple’s competitors in China.