With 12% market share, Apple took 62% of global cellphone profits

From Counterpoint Research via Daniel Eran Dilger, who snagged it for AppleInsider:

Apple's 62 percent share of profits generated in [calendar] Q2 was far ahead of Samsung's 17 percent, and was over three times the profit share of China's Huawei, OPPO, Vivo and Xiaomi put together. The remaining profits of more than 600 other handset brands amounted to less than 1 percent.

Profits in the industry were overwhelmingly generated by high-end premium models. And while overall demand for smartphones dropped by 1 percent in Q2, sales of premium smartphones (defined as being priced above $400, and accounting for about a fifth of all smartphone sales) actual grew by 7 percent globally.

Using CounterPoint's categories, Apple took 88% of the profit in the high end premium market ($800+), 44% in the midrange and 22% (tied with China's OPPO) in the low premium ($400-$600). Apple only does premium.

Cue the bar chart:

counterpoint iphone 62 percent profit

Click to enlarge.

My take: Would be more impressive if Apple hadn't taken 87% last quarter.

7 Comments

  1. Gregg Thurman said:
    Paraphrased and copied from iPhone Xs and Xs Max: The first reviews are in

    Consumer preference [price sensitivity] seems to indicate that the iPhone is two years advanced over the competition. This is consistent with observations by close iPhone followers that iPhone technology is two years ahead of Android equivalents, and by extension, would justify the iPhone’s premium pricing.

    0
    September 19, 2018
  2. Fred Stein said:
    According to Gartner, total SmartPhone sales were 337M Q2 CY 18. According to Business Insider used iPhone sales will reach 134M FY 18.

    Add 30M (conservative) used phones to the number of iPhones sold Q2 CY 18. These were priced between $100 and $600. Then recalculate everything from above. Or don’t bother.

    The point is that high quality, fully supported iPhones range from $150* to nearly $1449. This blows apart the small market share and premium buyer ideas.

    *below $150, you’re probably not getting a good phone.

    1
    September 19, 2018
  3. Gregg Thurman said:
    Not knowing the percentage of Android smartphones that sell for more than $800 its impossible to calculate the number that does.

    Be that as it may, Apple having a total market share of only 12% implies that the number of >$800 Android smartphones sold each year is quite large. Large enough anyway to generate significant switchers to the iPhone Xr ($799), iPhone Xs ($999), and iPhone XS Max ($1099).

    I think the iPhone Xs and the iPhone Xs Max camera (not to mention the larger screens) is going to be irresistible in China, Korea, and Japan.

    0
    September 19, 2018
  4. Peter Kropf said:
    The $750 Xr is directly at Samsung’s strength. Samsung’s 44% share of the $600 to $800 Price Tier.

    As reported by Daring Fireball https://daringfireball.net/2018/09/the_iphones_xs, the 2019 Xs/r trio have incredibly powerful AI supporting real-time computational photography. Will Samsung match this year?

    I’d guess this tier, in 2019, might have a split of 60/30 from today’s 44/41 because of the photography breakthrough.

    0
    September 20, 2018

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