iPhone X drives smartphone revenue dominance; Apple made more money in Q417 than the rest of the smartphone makers combined

“Data from Strategy Analytics holds some good news for smartphone manufacturers in that spending on phones hit an all-time high of $120 billion in the fourth quarter of 2017,” Steve Ranger reports for ZDNet. “But the bad news — for Apple’s competitors — is that the iPhone-maker grabbed a 51 percent share of global smartphone revenue.”

“That means Apple made more money than the rest of the market put together, despite selling a fraction of the total number of units — around 77 million out of 404 million sold in the quarter according to separate IDC data,” Ranger reports. “The analyst firm calculates that Apple’s iPhone generated $61 billion in the quarter, helped by solid demand for its premium iPhone X model.”

Ranger reports, “‘Apple now accounts for more revenue than the rest of the entire global smartphone industry combined. Apple generated three times more smartphone revenue than nearest rival Samsung and seven times more than Huawei. Apple iPhone’s average selling price is approaching US$800 and almost three times higher than the overall industry average. Apple iPhone is an incredible money-making machine,’ said Neil Mawston, executive director at Strategy Analytics.”

Apple's flagship iPhone X
Apple’s flagship iPhone X

 
Full article here.

MacDailyNews Take: Apple’s profit share dominance will only grow as quality customers want the best, not dog-slow half-assed knockoffs.

SEE ALSO:
Apple iPhone took more than half of worldwide smartphone revenue share in Q417, a new record – February 15, 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
How important is Apple’s iPhone market share? – May 29, 2017

9 Comments

  1. Note that they are talking about revenue, not profit. Revenue is important, but it’s profit that keeps a business viable and if Apple is earning more than half of the revenue, Apple’s profits will be amazing.

    As usual, Apple’s will earn a much higher proportion of the industry’s profits because Apple is able to sell iPhones for a high margin ( which is substantially increasing ), while many Android phones are sold either at a loss, or for virtually no profit at all. Those losses explain why we regularly read reports of Apple earning more than 100% of the industry profits, because the overall figure includes large negative profits ( losses ).

    1. The figure now is greater than 100%. Some manufacturers are actually incurring losses, so even when we include all those making profits (not called Apple), they still don’t make up for the ones that lose money, so Apple’s share of overall profits is over 100%.

  2. “Apple iPhone is an incredible money-making machine…”

    Thanks, Neil Mawston, executive director at Strategy Analytics! No one realized that until your brilliant insight.

    Analysts and the companies that they work at are, in general, economic parasites.

  3. “made more money”
    Usually, that refers to profit or income, not sales or revenue. Unless, the writer is a Brit, then they often use the term “made” with revenue. And, yes, the writer is a Brit.

  4. Whatever money Apple is making, whether in revenue or profits, it still isn’t enough for Wall Street and that’s not great for Apple shareholders. Compared to NVidia or Boeing, Apple must be making almost nothing based on investor expectations. Those companies are simply unstoppable. If Apple is so good with chip design, maybe they should start looking into designing AI chips which are obviously in super-high demand.

    Apple may indeed be a money-making machine but considering Apple’s compressing P/E there doesn’t seem to be any investor confidence compared to other major tech companies. I was looking at how many funds dumped Apple stock over the last quarter and there were far more sellers than buyers. Apple apparently didn’t satisfy those investors, so they’re definitely looking elsewhere. I think Apple is doing OK but Wall Street is still telling potential investors NOT to buy Apple, so something must be wrong with how Apple is being run.

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