New estimates suggest that Apple is responsible for 23% of all smartphone revenue around the world, and more impressively, 66% of total smartphone industry profits, vastly ahead of its rivals.
According to Counterpoint Research, Apple is miles ahead of its competition when it comes to profitability, accounting for two-thirds of all smartphone profits despite holding less than a third of the overall market share, demonstrating its power in the increasingly crowded space.
Indeed, despite rivals like Samsung and Huawei benefitting from cheaper manufacturing costs than Apple, the Cupertino company has managed to successfully retain its stronghold on profitability, blowing its rivals out of the water with some truly impressive statistics.
Speaking of the news, Counterpoint Research said that Apple “dominates” the global handset market and credited the company’s loyal premium user base in Europe, Japan, and the United States, where consumers are happy to pay a premium for Apple-branded tech.
Counterpoint added that Apple’s new foray into services, offering music, television, films, games, credit cards, and news, stands the company in the best possible position for the decade ahead, as consumers lock themselves into the ecosystem and its new offerings.
The research firm also pointed out that Apple is making it harder for Chinese smartphone manufacturers to increase their sales and market share, as Apple is lowering its pricing on some products, like the rumored iPhone SE 2 set for release in early 2020.
This, the company said, limits “the headroom that Chinese vendors had used to increase their ASPs,” suggesting trouble could be ahead for international competitors.
It concluded that Apple’s profit for the holiday season would increase, thanks to the new line-up of iPhones released in September.
With the iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max performing better than expected, December could round out a stellar year for the world’s biggest tech brand.
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