UPDATED 07:30 EDT / FEBRUARY 27 2015

Apple’s iOS dominated enterprise space and smartphone profits for Q4 2014

apple logo on iphoneLooking at overall smartphone market share for 2014, you’d be forgiven for thinking Google Inc.’s Android operating system is winning the race. Android took 81.5 percent market share compared to its nearest competitor Apple Inc.’s iOS that only took 14.8 percent. Looking at enterprise activations of smartphones and smartphone profit share for the fourth-quarter (Q4) 2014, iOS is the leader by a country mile.

Enterprise smartphone activations Q4 2014

According to data released yesterday as part of Good Technology’s Q4 Mobility Index Report, iOS’s share of the enterprise market increased from 69 percent to 73 percent year-on-year. The increase in iOS device activations in the enterprise was likely fuelled by the September launch of the iPhone 6 and iPhone 6 Plus –just in time for Q4’s shopping season.

In comparison, Android’s share of the enterprise market dropped by 4 percent to 25 percent while both Windows Phone and Microsoft Surface remained unchanged at one percent share each in total device activations.

Good Technology does not offer any insight into BlackBerry handset activations as BlackBerry Enterprise Server precludes access to this data.

Good Technology’s findings indicate that iOS devices are more popular in regulated industries, while Android prevails in industries with fewer regulatory compliance restrictions.

iOS is more commonplace in industries such as legal (95 percent), public sector (82 percent) and financial services (81 percent, while Android is more widely used in industries such as high-tech (45 percent), manufacturing (39 percent) and transportation (35 percent).

Google is trying to promote Android use in the enterprise through initiatives like its Android for Work platform, announced yesterday.

Smartphone profits Q4 2014

Global smartphone operating profits reached $21.2 billion in Q4 2014, an increase of 31 percent from $16.2 billion in Q4 2013. Android captured a record-low 11 percent of this figure, down from 29 percent one year ago. Apple, by contrast, took a record-high 89 percent profit share for the same period, up from 71 percent one year ago.

These figures from research firm Strategy Analytics indicate that Apple’s premium product and price strategy continues to pay off.

The report notes that Android’s failure to deliver significant profits for its hardware partners may be a concern for Google.

“If major smartphone manufacturers, like Samsung or Huawei, cannot make decent profits from the Android ecosystem, they may be tempted in the future to look at alternative platforms such as Microsoft, Tizen or Firefox,” reads the report.

A report from International Data Corporation published this week indicated that Android and iOS accounted for a new high of 96.3 percent of smartphone shipments in 2014. This year may see that number decrease as they face increased competition from Microsoft’s Windows 10, BlackBerry 10, Firefox OS and Samsung’s mobile OS, Tizen.

photo credit: iPhone 6 via photopin (license)

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