Apple has inked an agreement with French banking giant Societe Generale allowing clients of the bank to use the Apple Pay payment system. In a statement Societe Generale said its clients would in the future be offered Apple Pay though a timetable was not provided.
Apple Pay was launched in France over a year ago and in the country’s retail banking sector Societe Generale ranks as the largest operator that has signed on to Apple Pay. Some of the financial institutions that Apple has managed to partner with in France include savings banks as well as an online bank founded by Orange, a European-based telecommunications giant. Apple Pay also has a deal with Carrefour, a supermarket chain.
iPhone profit share
The agreement between Apple and Societe Generale coincides with release of a report by an analyst at Canaccord Genuity, Michael Walkley, who estimates that the Cupertino, California-based tech giant collects the majority of profits in the smartphone sector. This translates to mean that it will likely be able to remain in a dominant position for the foreseeable future since it will have the resources necessary to fund Research and Development which will assist in maintaining a leading position.
According to Walkley, Apple profit share this year for the last three quarters has been 72% in the first quarter, 68% in the second quarter and 84% in the most recent quarter. Though Apple enjoys majority of the profits, the revenues are significantly lower compared to the profits. In the first quarter of the year Apple’s share of revenues in the smartphone sector was 42%. The second quarter saw Apple’s share of the revenues at 385 while in the most recent reported quarter it was 51%.
Second-most profitable vendor
Over the years the pattern has largely been maintained. Last year Apple’s share of profits in the smartphone sector was 83% while the revenue share was 50%. In 2015 the iPhone maker’s share of the profits was 90% while revenue share was at 51%. Three years ago Apple managed to bag 77% of the profits and 42% of the revenues.
After recording declines in 2015 and 2016 Samsung’s profit share in the smartphone sector has been on an upward trend especially in the last two quarters. In the first quarter of this year Samsung’s profit share was 15% before it increased to 25% in the second quarter. It slightly fell to 24% in the third quarter. Revenue share for the South Korean conglomerate was 29% in the first quarter, 37% in the second quarter and 35% in the most-recently reported quarter.