All over the world, Apple has become the biggest profit and revenue generator in the smartphone industry. In Q2 2021, even though they only contributed a reasonably moderate 13% on global smartphone shipments, the tech giant still managed to capture 75% of the overall smartphone profits and raked in 40% of the revenue.
According to Counterpoint, even though this is a very incredible statistic, it is actually down compared on the peak in the fourth quarter of 2020, when Apple captured 50% of all smartphone revenue, up from its 28% in the third quarter of 2020.
In the same year, precisely Q4 2020, Apple chomped off 86% of the global smartphone profits all thanks to the release of the iPhone 12 which featured 5G connectivity, a new design, amongst other things.
Counterpoint noted, “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.”
As Apple got 75% of smartphone profits, it is then followed by Samsung, Xiaomi, OPPO and vivo.
Image: The Guardian