When it comes to smartphones sales, Android has been taking a very big lead as of late. It has a staggering 81 percent of the total user base in the smartphone market. This leaves Apple with only roughly 12 percent of the market share in terms of units sold. Why is this news not alarming for Apple?

The truth is that despite the fact that Apple has a smaller percentage in terms of smartphones sold in the market, they are still the ones raking all the profits. How is this possible? That is because of the disparity in terms of the price. A new iPhone unit is sold for at least $635. Android phones produced by Samsung can be bought at $235 these days. In China, where there are cheaper versions available, it is even possible to get one at just $50. Also, the 81 percent market share of Android mostly made up of "junk phones." Samsung takes up over 30 percent of those statistics, which is why it has become Apple's biggest competitor. However, the rest of the companies are not really a huge threat to Apple.

In terms of revenue via app downloads, iPhone leads the market again. Despite the fact that there are more Android devices, iPhone rakes in most of the overwhelming app sales. However, the volume of apps available from the Google play app store is now catching up with Apple. They reportedly increased the percentage of app downloads available in Google play by up to 75 percent. However, in terms of income, Apple is still far in the lead. At the end of the day, this goes to show that the number of devices or apps sold in a market does not necessarily translate to bigger revenues.

Apple's strategy works: market yourself as selling premium and high quality products, then never place a low price on them. Now that it has an established following, Samsung will offer higher end products to its consumer base.