Apple is known to ask a very high price tag for its devices, and most people often pay without any hesitation. A new research highlights that Apple took more than 75% of the global smartphone profits, despite it not have any majority market share.
Apple isn’t the number one company that ships the most devices in the world, that’s Samsung, but it’s the one company that profits the most from smartphones. Counterpoint Research (via 9to5Mac) says that iPhones accounted for 40% of global smartphone revenue, and 75% of profits went to Apple.
“Apple has been the biggest profit and revenue generator in the handset business. In Q2 2021, it captured 75% of the overall handset market operating profit and 40% of the revenue despite contributing a relatively moderate 13% to global handset shipments.”
“While this performance shows the power of the Apple brand, it is still lower than the peak of Q4 2020 when its revenue share reached a staggering 50%, up from 28% in Q3 2020, and its profit share reached an unprecedented 86%, up from 51% in the previous quarter. While there was a significant jump in its shipment share, from 9% to 17% in the same period, the extent of its revenue share reflects the success of its first 5G-enabled iPhone series.”
Samsung is the largest smartphone vendor in terms of actual shipments, but it failed to reach the second-highest revenue share in Q4 2019 and Q2 2020 when Huawei was still in the fight. However, Samsung has steadily been on the number two spot in the past several quarters, and it’s just behind Apple. The report also highlights that Apple is a premium smartphone manufacturer, and even companies such as Xiaomi ship more devices, but of course, it has widely different profit margins and devices at different prices.