Apple dominates global handset market with 66% of industry profits and 32% of overall revenue

“Overall global handset profits declined 11% YoY to USD 12 billion in Q3 2019 due to an increased mix of entry to mid-tier products and a fall in revenues for key smartphone OEMs,” Karn Chauhan writes for Countepoint:

Additionally, the replacement cycle for premium smartphones has lengthened as recent hardware features have been unable to offer an attractive reason to upgrade.

Apple dominates the global handset market by capturing 66% of industry profits and 32% of the overall handset revenue. The loyal premium user base in the major markets like the USA, EU and Japan is one of the reasons that Apple can still operate at a profit level that its competitors can only wish for. Now with a strong service strategy, Apple’s overall ecosystem is strong enough to guarantee it a steady inflow of revenue in the coming years. In the immediate future, we believe that Apple’s profit for the holiday season will increase with the new line up of iPhones gaining good traction.

Apple Continues to Dominate Global Handset Industry Profit Share
Apple Continues to Dominate Global Handset Industry Profit Share

Samsung is a distant second, taking 17% of the overall handset industry profits.

Chinese smartphone brands operate at low-profit margins, but better than in previous years… However, it is becoming a challenge for Chinese brands to increase their smartphone ASPs and margins due to a combination of longer consumer holding periods and Apple lowering pricing on some key SKUs, which has limited the headroom that Chinese vendors had used to increase their ASPs.

MacDailyNews Take: There’s Apple’s revolutionary iPhone, far above, and then there are the fake iPhone bottom feeders. Same as it ever was.

2 Comments

  1. But I suppose big investors don’t see that as enough. I’m guessing they also want Apple to capture that amount in market share percentage so the company won’t be considered doomed.

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