Google’s Android Faces Serious Competition by Apple’s IPhone

Apple Inc has successfully managed to attain the biggest share of the profits earned globally from the sales of smartphones. Even though, Google’s Android has dominated the smartphone market by maintaining a position in the industry and by being the most popular and user-friendly smartphone system pro dominated ducers. The search engine giant has managed to have a share of 81.5% of the smartphone market according to a report released by IDC. In the same report, IDC has disclosed that Apple’s iOS only has a share of 14smartphonesmart phone market.

Having said that, Apple has also succeeded in producing the most profitable system that has given the company around 89% of the profits from around the globe from the smartphone industry. In the previous financial year, the tech company received 70.5% of the total profits from selling smartphones and iOS systems from all over the world.

Google’s (NASDAQ: GOOG) Androids have indeed established themselves in the smartphone industry but when it comes to making profits, the phones have failed miserably. Profits from the android phones have seen a consistent dip and a downfall is seen, which markets the profits at only 11%. Previously, the profits were being made at 29.5%. Android phones are now being sold at a really low price which does little to help meet the requirements of the production prices and no profit whatsoever is received by the sales.

Apple Inc is one of those rare smartphone makers which can sell mediocre systems and yet sell them at a really high price and still get away with it. The new iPhone 6 was diagnosed with quite a lot of problems related to a weak battery and an ordinary camera whereas Samsung’s Galaxy S5 was deemed as the better phone as compared to it. However, this does not discourage the Apple users to buy the new iPhone 6 and phenomenal sales were recorded all around the globe in which the phone makers got a chance to make double the profits that they were already making.

In a report released by IHS Company it was made evident that an iPhone 6 that costs around $649 has been manufactured at a really low price of $200 which increases the chances of the Californian company to receive profits at a really high rate. This is one of the reasons why Apple has managed to gain more profit that Google (NASDAQ: GOOG) in the smartphone market.