The latest estimates from Counterpoint research show that Apple continues to dominate the global smartphone profits in the third quarter of 2017. While Apple’s share of the profits has fallen from 86 per cent from the previous quarter, it still has a respectable 59.8 per cent in the third quarter of 2017.
Despite facing tough competition from its arch rivals, Apple still generates more than $150 profit per iPhone sold in Q3, which is five times higher than Samsung and approximately fourteen times higher than the average per unit profit of Chinese brands.
“Apple still generates more than $150 profit per iPhone sold and this will continue to grow into the holiday season quarter buoyed by the high price iPhone X series”, Counterpoint Research’s Director, Neil Shah said in a statement. Our recent channel checks across key Apple markets showed, the demand for the 256GB version of iPhone X is higher which will boost Apple’s profits even higher”, he added.
The South Korean major Samsung took a distant second place with a 25.9 per cent of profits. Samsung offers the highest number of models across different price bands. According to the latest data, Samsung’s profit per unit was $31 in the third quarter of 2017.
In the fourth quarter, the market research firm estimates the total profits of Apple will improve, thanks to the arrival of the iPhone X. Samsung meanwhile, has made a comeback with the the Note 8 and its S8 series continue to perform on par.
Chinese brands like Huawei, Oppo and Vivo all performed similar in terms of profits per unit, each having an average per unit profit of $15, $14 and $13 respectively. Xiaomi’s profit per unit profit is lower ($2), as it survives on thin margins.
“The growth of Chinese brands can be attributed to the diligent efforts in streamlining the supply chain with rising mix of mid to high end smartphones in their portfolio”, Tarun Pathak, Counterpoint Associate Director, said. Even in the premium segment, players like Huawei are positioning their flagship models just below the premium offerings from Apple and Samsung. This strategy is designed to penetrate premium market while maximizing revenue and profit”, Pathak added.
Huawei, the world’s third largest smartphone maker, witnessed highest profit growth of 67 per cent year-over-year in Q3 2017 due to expansion of its portfolio across different price bands. Oppo and Vivo captured fourth and fifth position in the global handset profit share due to their excellent performance in China. While Xiaomi has made a strong comeback with handset profit growth of 41 per cent year-over-year, it is still behind the market leaders.