Apple takes two thirds of the pie in global smartphone profits with only 12 per cent market share, says report
- Huawei has shipped 230 million smartphone units so far this year, representing 12 per cent growth from last year’s 206 million
It might only have a 12 per cent market share in global smartphone shipments, but US technology giant Apple captured 66 per cent of industry profits and 32 per cent of the overall revenue in the third quarter of 2019, according to a new report from Counterpoint Research.
Samsung and Huawei, the world’s two largest smartphone brands with global market shares of 21 per cent and 18 per cent in the quarter respectively, were the only two brands that increased their revenue on an annual basis, said Counterpoint,
Samsung took 17 per cent of the overall handset industry profits in the period. Counterpoint did not provide specific figures for the remaining major brands, although a chart embedded in its report suggests that Huawei earned about 10 per cent of industry profits in the quarter, Oppo and Vivo earned about 5 per cent each, and Xiaomi was well below 5 per cent.
Although Apple continues to garner the lion’s share of smartphone industry profits, the Cupertino, California-based company has seen its dominance weaken over the years. In the third quarter of 2016 its share of industry profits hit a record 91 per cent, according to research firm Strategy Analytics.
Separately, Android phone makers – especially Chinese brands which used to operate on low-profit margins – have boosted profits by expanding their businesses outside China and moving to high-tier price bands.
In coming quarters the wider adoption of 5G is also expected to drive demand for higher priced handsets, which in turn will generate revenue growth for original equipment manufacturers (OEMs) like Foxconn, which are already preparing for full 5G commercialisation, said Counterpoint analyst Karn Chauhan.
