Apple Beats Competition To A Pulp: Accounts For 92 Percent Of All Smartphone Profit In Q1 With Only 20 Percent Of The Sales

According to estimates from analysts at Canaccord Genuity, Apple Inc. AAPL made 92 percent of all the profits in the smartphone industry in the first-quarter of 2015 despite accounting for only 20 percent of all the sales.

Michael Andronico, Associate Editor atTomsGuide, was on CNBC Monday to weigh in on this.

The Reason

Andronico highlighted the reason for Apple having a significant share of smartphone profits saying ,"I think, brand recognition is one of the biggest ones. A lot of people just know iPhone as their primary smartphone. The brand has been around for a very long time now since 2008 and a lot of people are stuck with iPhone and that's the software that they are comfortable with, it's the hardware they are comfortable with."

"People know Apple, people are very familiar with the iPhone and a lot of smartphone consumers are more comfortable just buying the new iPhone when it's time to get a new device."

iPhone Is Enough For Apple To Ride On For A Long Time

Andronico was asked if Apple needs other blockbuster device soon or the lead in the smartphone market is enough for the company to do well for a long time. He replied, "I don't think, Apple necessarily needs another blockbuster. Yes, the Apple Watch isn't exactly a hit. But when you compare to other smartwatches it is still doing well. I think, that's a matter of the smartwatch space still being very young and very small. And other than that, I think, the iPhone is enough for Apple to ride on for a very long time."