Apple captures half of smartphone revenue with quarter of market share

Apple's disproportionate revenue capture—49% of sales on 23% of unit volume—reflects a fundamental split in how smartphone makers compete: Apple extracts value through premium pricing and services while Android OEMs chase volume. The gap persists because Apple controls both hardware and software, letting it capture downstream value (apps, services, financing) that competitors cannot. Shipment volume is an increasingly poor measure of smartphone market power. For retailers and payment processors, Apple's terms and business rules disproportionately shape the smartphone commerce ecosystem.