Apple might have seen a decline in iPhone sales over the years, but it still manages to take home the largest chunk of the profits, according to a report by research firm Strategy Analytics. The report documents that global smartphone profits reached $9 billion in the third-quarter of 2016 with Apple recording 91 per cent of the total of the total profits.
“We estimate the global smartphone industry realized total operating profits of US$9.4 billion during Q3 2016. Apple dominated and captured a record 91 percent share of all smartphone profits worldwide. Apple’s ability to maximize pricing and minimize production cost is hugely impressive and the iPhone continues to generate monster profits. Huawei, Vivo and OPPO are the next three most profitable smartphone vendors globally this quarter, but they are still a long way behind Apple,” said Linda Sui, Director at Strategy Analytics in a press statement.
Apple stood at top of the profits table with $8.5 billion in profits; followed by Huawei, Vivo and Oppo at $0.2 billion each netting 2.4 per cent, 2.2 per cent and 2.2 per cent each. Sui noted that apart from Apple, the other top performers were Chinese manufacturers.
“Huawei, Vivo and OPPO have not only improved their smartphone product lineups this year, they have also enhanced their operational abilities and kept a tight lid on expanding distribution costs,” she added.
Interestingly data from Strategy Analytics showed that China’s Huawei captured 2 percent share of all smartphone profits, and became the world’s most profitable Android vendor for the first time ever.
The report suggests that overall the revenues for the global smartphone industry stabilised during the quarter, and Android maintained the top position as the OS with the largest revenue – followed by iOS. Blackberry and Microsoft did not record any profits during this period.
Ming-Chi Kuo, KGI Securities analyst recently said in a report that the iPhone 7 and iPhone 7 Plus have already reached peak demand, and their sales are expected to hit a slump soon. Reports have also suggested that the Cupertino giant will not be launching an iPhone SE upgrade in 2017 to drive up sales of the 2016 flagships (on which the company has higher profit margins).