Global smartphone operating profit grew 31 percent annually from US$16.2 billion in Q4 2013 to US$21.2 billion in Q4 2014. Android hardware vendors combined took a record-low 11 percent global smartphone profit share, down from 29 percent one year ago. In contrast, Apple iOS captured a record-high 89 percent profit share, up from 71 percent in Q4 2013.
Strategy Analytics notes that Apple's strategy of premium products and lean logistics is hugely profitable for the company. The weak profitability of Android hardware partners should worry Google as manufacturers could look to alternative platforms such as Windows, Tizen or Firefox.
Take a look at the charts below for more details...