Apple iPhone Accounted For 66% Of The Global Smartphone Market Profits
Karamchand Rameshwar - Dec 22, 2019
Despite being the 3rd-biggest phone vendors on the world, Apple still has the highest profitability out of the three.
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When you hear reports of iPhone sales declining, or Huawei surpassing Apple to become the world's second-largest smartphone manufacturer. You may not realize that the Cupertino-based company is still more successful in selling phones than all of its competitors like Samsung or Huawei.
The latest Counterpoint Research report shows the enormous profits that iPhones have made to Apple. In Q3 / 2019, iPhones accounted for 66 percent of the global smartphone market's profits. The second place belongs to Samsung with only 17 percent.
The report said that the iPhone maker dominated the global phone maker, claiming 66 percent of total profits and also 32 percent of the total revenue. One of the main reasons for the incredible high profitability is loyal to the brand of premium users in major markets like Europe, Japan, and the US. With a service and ecosystem strategy large enough, Apple can ensure stable revenue in the coming years.
But not all is good news for the brand According to Counterpoint Research, the total profit of the global market has decreased by 12% to 12 billion USD in Q3 / 2019. The cycle of upgrading the high-end smartphone of users is also longer.
The important thing is that Apple has new directions that are growing strongly. In it, the star is the wearable devices. The Apple Watch and the AirPods are extremely successful, helping the brand reduce its reliance on iPhone sales.
Counterpoint Research also emphasizes that even if iPhone sales decline, Apple can still succeed in several other ways. Its subscription services like Apple TV have been showing signs of growth. Nonetheless, we have big reasons to be excited about the iPhone line up in 2020. They are said to be the first 5G iPhone models and carry a major change in the design aspect. It would be the first big redesign for the iPhone lineup since the iPhone X launched in 2017.
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