Apple grabs record 91% share of global smartphone profits in Q3, analyst says

Posted:
in iPhone edited November 2016
According to the latest estimates from market research firm Strategy Analytics, Apple iPhone sales gobbled up 91 percent of worldwide smartphone profits during the third quarter of 2016, setting a new record.


Source: Strategy Analytics


In a research note obtained by AppleInsider on Tuesday, Strategy Analytics pegged Apple as the world's most profitable smartphone maker, with an operating profit of $8.5 billion for the quarter ending September. By contrast, the entire industry realized operating profits of $9.4 billion during the same period.

"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," said Linda Sui, director at Strategy Analytics. "Huawei, Vivo and OPPO are the next three most profitable smartphone vendors globally this quarter, but they are still a long way behind Apple."

Apple's performance is made all the more impressive in comparison with the quarter's remaining top-four vendors, all of which notched operating profits hovering at around $200 million. Second place Huawei, for example, generated 2.2 percent of smartphone operating profit worldwide, while Vivo and OPPO both accounted for a 2.2 percent share.

As noted by Sui, three of the top four most profitable smartphone vendors are now based in China. The firm saw increased performance from Huawei, Vivo and OPPO thanks to strengthened product lineups and a lean supply chain strategies.

In October, Apple announced a Wall Street beat for its fourth fiscal quarter of 2016, earning $46.9 billion in revenue on the back of 45.5 million iPhone sales. Though revenues were down year over year, iPhone shipments were better than expected with handset ASP edging up above $600 thanks in part to iPhone 7 and 7 Plus.

During the most recent quarter, Apple saw iPhone sales increase in 33 of its top 40 markets, and noted record churn from Android switchers. However, much of those gains were offset by a 30 percent year over year dip in Chinese iPhone sales.

Today's research note is a bit more conservative than a similar report issued by BMO Capital Markets earlier this month. According to BMO analyst Tim Long, Apple's share of handset industry operating profits hit 103.6 percent as a result of losses posted by other major vendors over the same period.
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Comments

  • Reply 1 of 36
    ajmasajmas Posts: 601member
    For a phone that is only meant to have around a 20% market share, that is pretty impressive.

    One such source for this value: https://www.statista.com/statistics/216459/global-market-share-of-apple-iphone/
    schlackwatto_cobra
  • Reply 2 of 36
    Share price will get globbered tomorrow. Serious wave off haters and crappy negative journalism at the moment.
    Fatmanwatto_cobra
  • Reply 3 of 36
    I thought we didn't like analyst and what they have to say because they are always wrong? Oh wait! This is something positive about Apple so we like them now. 
    asdasdduervoavon b7
  • Reply 4 of 36
    I thought we didn't like analyst and what they have to say because they are always wrong? Oh wait! This is something positive about Apple so we like them now. 
     91% is actually believable, though. 

    Apple is usually the world's most profitable smartphone maker to begin with. 
    baconstanglolliverlamboaudi4watto_cobrajony0cali
  • Reply 5 of 36
    Surprised headline isn't: 

    "Apple Unable To Get 9% of Global Smartphone Profits. Is End of Cook Era Near?" 

    edited November 2016 andrewj5790viclauyycnetmagebaconstangFatmanchiaquadra 610equality72521[Deleted User]lamboaudi4
  • Reply 6 of 36
    mtbnut said:
    Surprised headline isn't: 

    "Apple Unable To Get 9% of Global Smartphone Profits. Is End of Cook Era Near?" 

    This isn't cult of Mac or Mac rumors.
    lolliverjSnivelyjony0cali
  • Reply 7 of 36
    asdasdasdasd Posts: 5,686member
    Down from 103%?
    schlack
  • Reply 8 of 36
    dasanman69dasanman69 Posts: 13,002member
    asdasd said:
    Down from 103%?
    I was thinking the same thing. What changed? 
  • Reply 9 of 36
    boredumbboredumb Posts: 1,418member
    (reversed)
    edited November 2016
  • Reply 10 of 36
    iqatedoiqatedo Posts: 1,823member
    mtbnut said:
    Surprised headline isn't: 

    "Apple Unable To Get 9% of Global Smartphone Profits. Is End of Cook Era Near?" 


    You meant 'Apple Unable To Get last 9% of Global Smartphone Profits. Is End of Cook Era Near?', right?

    baconstangjony0
  • Reply 11 of 36
    Grab they by 91%
    buckaleccali
  • Reply 12 of 36
    Now, if only Wall st gave a damn about Apple's "profits".
    baconstangwatto_cobracali
  • Reply 13 of 36
    Apple's numbers may be close to right, but those other four look suspiciously like they're made-up. 
    lollivercali
  • Reply 14 of 36
    This isn't an unequivocally a good thing. Look at what happened to MS sitting on the cash cow of Windows. Apple isn't struggling like they were when they released the iMac, they aren't clawing their way back like they were when they released the iPod or the iPhone or the iPad. Is the relative comfort of raking in all this money leading to better products? Has the increased spending in R&D added more breakthrough patents to the Apple portfolio? Has the influx of top "talent" from the car industry or the Watch industry done anything more than drain money from Apple? 


    jbishop1039kamiltonlarryjw
  • Reply 15 of 36
    asdasd said:
    Down from 103%?
    I was thinking the same thing. What changed? 
    That was Apple and Samsung combined in the previous analysis I believe.
    watto_cobra
  • Reply 16 of 36
    This isn't an unequivocally a good thing. Look at what happened to MS sitting on the cash cow of Windows. Apple isn't struggling like they were when they released the iMac, they aren't clawing their way back like they were when they released the iPod or the iPhone or the iPad. Is the relative comfort of raking in all this money leading to better products? Has the increased spending in R&D added more breakthrough patents to the Apple portfolio? Has the influx of top "talent" from the car industry or the Watch industry done anything more than drain money from Apple? 


    dorkus maximus. . .good name!

    Comparing Apple's iPhone profits to Windoze is TOTALLY illogical. They're not even close to being of comparable magnitude or character.

    The Windoze hegemony was a totally contrived hegemony of trapped-in drones most of whom were compelled to "deal with" computers and software in order to keep their dreary jobs. Too many of whom did so while covertly kicking and screaming, learning only the bare minimum to just get by so as not to get fired. Microsoft put the screws to their corporate clients by perpetuating the hegemony with crappy software and systems which demanded constant attention from IT people just to keep running.

    Apple's smartphone profits have resulted from Apple's superior hardware and software ecosystem all carefully designed to be intuitive and "just work." Millions have realized this and have consequently been happy to part with relatively "big bucks" to get "the best." Apple has earned and deserves its profits. Witness the continuing significant number of switchers to the iPhone and Apple products every time a new product is released.
    baconstangequality72521kamiltonwatto_cobrapalominecali
  • Reply 17 of 36
    jd_in_sbjd_in_sb Posts: 1,600member
    I thought Samsung still made good coin from smartphones. I guess the flaming Notes burned up profits too.
    edited November 2016 baconstangkamiltonwatto_cobracali
  • Reply 18 of 36
    tyler82tyler82 Posts: 1,101member
    Doesn't mean they sold more, just that they make more profit off of what they sell. People are willing to pay more for Apple devices because of the user friendliness, the "sex," the pop culture appeal, the software and hardware integration that makes for a uniform experience, etc.
    watto_cobra
  • Reply 19 of 36
    ajmas said:
    For a phone that is only meant to have around a 20% market share, that is pretty impressive.

    One such source for this value: https://www.statista.com/statistics/216459/global-market-share-of-apple-iphone/

    Except that's only sales per quarter, and not actual users. An iPhone sale results in several years of use. Most of those Android sales are sub $100 phones (even sub $50) that get thrown out and replaced when something goes wrong.

    If you added up the cumulative Android phone sales over the years then there should be around 5 billion in use. A number that's so far from realistic as to be unbelievable. 
    watto_cobracali
  • Reply 20 of 36
    mtbnut said:
    Surprised headline isn't: 

    "Apple Unable To Get 9% of Global Smartphone Profits. Is End of Cook Era Near?" 


    Well done.   :D
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