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Apple Captures Record 91 Percent of Global Smartphone Profits: Research (cnbc.com)
Apple has captured a record share of profits in the global smartphone industry in the third quarter, according to new research, despite grappling with falling iPhone sales. From a report on CNBC:Third-quarter smartphone operating profit reached $9 billion globally of which Apple took 91 percent of the share, Strategy Analytics said in a note on Tuesday. This amounts to $8.19 billion for the U.S. technology giant. Apple has the highest profit margins in the smartphone industry thanks to a loyal brand following and the ability to price its iPhones at a premium. And the figures come even after Apple reported three straight quarters of iPhone sales declines. Sat a long way behind Apple is China's Huawei which managed to grab 2.4 percent of global operating profit share in the smartphone market, accounting for $200 million, according to Strategy Analytics. Chinese start-up brands Vivo and OPPO are in third and fourth place, both capturing 2.2 percent of global smartphone profit each.
Actually, their market share has been running in the 15% range, not 40 (http://bgr.com/2016/05/23/smartphone-market-share-q1-2016/).
This implies that they are making on the order of six times as much profit on each phone. This isn't a cost efficiency due to size issue. Their hardware is simply cheaper to make.
So, yeh, people are paying a whole lot for pure vanity.