According to the latest research from Counterpoint’s Q4 2017, Global handset profits declined 1% YoY in Q4 2017 (October-December) as the premium smartphone market did not grow as expected. We believe that the Global smartphone market has already reached its peak with longer replacement cycles and key smartphone OEMs are now under pressure to book profits.

Counterpoint Research Analyst, Karn Chauhan, said in a statement, “Global handset profits declined 1% YoY, but Apple grew 1% YoY even with the iPhone X being available for only two months in Q4 2017. The iPhone X alone generated 21% of total industry revenue and 35% of total industry profits during the quarter and its share is likely to grow as it advances further into its life cycle. Additionally, the longer shelf life of all iPhones ensured that Apple still has eight out of top ten smartphones, including its three-year-old models, generating the most profits compared to current competing smartphones from other OEMs.”

Commenting on the performance of Chinese brands, Associate Director, Tarun Pathak, highlighted, “Chinese OEMs cumulative profits crossed 1.3 USD billion during Q4 2017. This was driven by the increased mix of mid to high end smartphones. Infact, the average selling price (ASP) of their flagship devices also increased YoY. Key Chinese players like Huawei, OPPO and Vivo are now looking to scale up the price band, by leveraging their inhouse manufacturing capabilities and bringing innovation to their devices.”

iPhone X Alone Generated 35% of the Total Handset Industry Profits in Q4 2017

Apple iPhone capturing 86% of the total handset market profits in Q417

 
Market Summary – Q4 2017:

• Apple remained the most profitable brand, capturing 86% of the total handset market profits.

• Further splitting profits by model, the top 10 models captured 90% of the total handset profits.
Apple and Samsung flagship models, lead in terms of profits as compared to other OEMs.

• iPhone X alone generated 35% of the total handset industry profits. This is a significant landmark, as the model was available in the market for only two months during Q4 2017.
iPhone X generated 5X more profit than the combined profit of 600+ Android OEMs during Q4 2017.

• Apple’s older generation iPhones, iPhone 7 and iPhone 6 still generate more profit than some of the more recent Android flagships from key Chinese OEMs.

Source: Counterpoint Technology Market Research

MacDailyNews Take: You know, because iPhone X is a “disappointment.”

Profit from the painfully gullible.MacDailyNews, December 26, 2017

SEE ALSO:
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Apple’s iPhone X sales continue to disappoint, some analysts say – March 22, 2018
Ignore the iPhone X naysayers – March 10, 2018
iPhone X drives smartphone revenue dominance; Apple made more money in Q417 than the rest of the smartphone makers combined – February 16, 2018
Apple iPhone took more than half of worldwide smartphone revenue share in Q417, a new record – February 15, 2018
Will the naysayers admit they were wrong about Apple’s iPhone X? – February 5, 2018
Strategy Analytics: Apple has shipped 1.2 billion iPhones in the past 10 years; $760 billion in global revenue to date – September 8, 2017
Apple took 83% of smartphone market profits in calendar first quarter – May 16, 2017