Apple took home 40% of global smartphone revenue in the second quarter of this year.
That’s despite iPhones only accounting for 13% of global smartphone shipments, demonstrating the huge differences between manufacturers like Apple and lower-cost rivals like Xiaomi. According to Counterpoint, Apple was responsible for 40% of global smartphone revenue and 75% of global profits.
The Cupertino company served as the biggest revenue and profit generator in the quarter, responsible for an eye-watering 75% of the overall handset market operating profit. Although this is a truly remarkable statistic, it’s actually down on the peak in the fourth quarter of 2020, when Apple was responsible for 50% of all smartphone revenue, up from its 28% in the third quarter of 2020.
In the same Q4 2020 period, Apple took home 86% of global smartphone profits thanks to the launch of the iPhone 12, which introduced a new design, 5G connectivity, amongst other things.
The report added: “Apple also benefits from interoperability between its devices. The convenience with which one may shift between a Mac, iPad and an iPhone encourages users of one Apple device to stay within the Apple ecosystem by acquiring other of the brand’s devices.
“This is made possible by Apple’s significant control over both hardware and software, enabling a seamless shift of work on an app between multiple devices.
“While this has been the case for some time, it has become particularly pronounced with the stickiness of music, media, news, storage, etc. Apple is likely to retain this edge, enabling it to continue charging premium prices for its handsets, thus maintaining high operating profit margins.”
With Apple accounting for 75% of smartphone profits, you might be wondering where the rest comes from. Samsung comes in second place, and other brands make a negligible profit in the same period.
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