Apple grabs 86% of global smartphone profits, iPhone X alone seizes 35%

Posted:
in iPhone edited April 17
New research covering the last calendar quarter of 2017 suggests that not only did Apple once again command the lion's share of the smartphone market's profit, but the iPhone X was responsible for collecting more than one-third of it.

iPhone X and iMac


According to a study by Counterpoint Research seen by AppleInsider, Apple gained one percent of total profits year-over-year in a static smartphone market. Not only that, but the iPhone X itself generated five times the profit of combined profits of over 600 Android manufacturers during the fourth quarter of 2017.

"The share of iPhone X is likely to grow as it advances further into its life-cycle," said Counterpoint Research Analyst Karn Chauhan. "Additionally, the longer shelf life of all iPhones ensured that Apple still has eight out of top 10 smartphones, including its three-year-old models, generating the most profits compared to current competing smartphones from other OEMs."

Percentage of profits by smartphone type


Counterpoint expects more stiff competition in the next year -- but it has predicted the same for the last two years, and it has not yet materialized.

In Apple's quarterly earnings statement, Apple CEO Tim Cook declared that since it shipped to customers, the iPhone X was the biggest seller every week during the holiday season that was being examined by Counterpoint, outpacing the iPhone 8 and iPhone 8 Plus through November and December.

"[The] iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November," Cook said. "We've also achieved a significant milestone with our active installed base of devices reaching 1.3 billion in January. That's an increase of 30 percent in just two years, which is a testament to the popularity of our products and the loyalty and satisfaction of our customers."

Clarifying his statement, Cook added during the question and answers session that the iPhone X popularity has continued to the early-February earnings announcement, and was not just limited to the holiday quarter.

iPhones quarterly sales graph 2012 through 2018


The iPhone 8 and iPhone 8 Plus which held the number two and three spots in the Counterpoint research, shipped to customers starting on Sept. 22. Rumors quickly started after the iPhone X commencement of sales on Nov. 2 that the iPhone 8 Plus was more popular than the iPhone 8 was, and manufacturing orders were being shifted to accommodate the balance, and the then stock-limited iPhone X.

The iPhone X pre-order process rapidly progressed to six-week back-orders. However, most if not all of the supply issues were resolved by mid-December, with the device readily found on store shelves the week before Christmas.

As of late, reports from the supply chain are predicting low demand for the iPhone X based on the supply chain, but all have questionable accuracy. Apple will report its earnings for the second quarter of its fiscal year 2018 on May 1 -- but will not break out sales volumes for each model of phone.



«13

Comments

  • Reply 1 of 53
    MacProMacPro Posts: 17,182member
    Holy Cow!
    watto_cobra
  • Reply 2 of 53
    slurpyslurpy Posts: 4,984member
    35% of all smart phone profits fora single phone model by a single company? Holy fuck. "Failure" indeed. 
    StrangeDaystmaykurai01Muntzpotatoleeksoupchasmpscooter63watto_cobrajony0
  • Reply 3 of 53
    wood1208wood1208 Posts: 1,387member
    Earlier Critics,gloom and doom,ant-apple camp said iPhone X a failure, Now change to "conspiracy" .
    Muntzlkruppwatto_cobra
  • Reply 4 of 53
    mavemufcmavemufc Posts: 280member
    Best company in the world😉
    kurai01Muntzchasmwatto_cobra
  • Reply 5 of 53
    rogifan_newrogifan_new Posts: 2,751member
    Where are they getting this data from considering Apple doesn’t provide sales, revenue or profits by iPhone model? Also how do they know what the profits are for the smartphone industry? What companies provide profit data just for their smartphones?
    JWSC
  • Reply 6 of 53
    asdasdasdasd Posts: 4,998member
    I am glad they are not above 100% anymore. That was hurting my head. 
    king editor the gratepotatoleeksouptallest skilpscooter63watto_cobrajony0
  • Reply 7 of 53
    asdasd said:
    I am glad they are not above 100% anymore. That was hurting my head. 
    Ah, but most likely if you add Samsung to Apple, then it’s over 100%. I say most likely because I haven’t seen the numbers but it works that way every year. :)
    watto_cobra
  • Reply 8 of 53
    LukeCageLukeCage Posts: 135member
    asdasd said:
    I am glad they are not above 100% anymore. That was hurting my head. 
    Yea but 35% of all smartphone profits from one phone makes my head hurt. 
    watto_cobra
  • Reply 9 of 53
    mubailimubaili Posts: 376member
    86%, not much room to grow from here. Doomed.
    rare commentpotatoleeksoupchasmpscooter63watto_cobra
  • Reply 10 of 53
    asdasdasdasd Posts: 4,998member
    asdasd said:
    I am glad they are not above 100% anymore. That was hurting my head. 
    Ah, but most likely if you add Samsung to Apple, then it’s over 100%. I say most likely because I haven’t seen the numbers but it works that way every year. :)
    NOOOOooooooooo!
    red oakwatto_cobra
  • Reply 11 of 53
    That's fairly decent profits but yet the iPhone X is considered a "failed" product. I suppose anything can be considered a failure if it doesn't meet a particular person's standards. Apparently, the only measure for Wall Street is when a product exceeds a certain amount of market share percentage whether or not the product is profitable or not. If market share percentage is the only measure of success for a product, then no Apple product will ever be considered "successful." Generally speaking, Apple's entire business is not considered a successful business as far as Wall Street is concerned because of such low growth potential and Apple doesn't seem to dominate any particular market. However, Apple's cash flow is good and profits are relatively high but is still considered a doomed business due to certain set standards of what is considered a successful business.
    red oakRonnnieOtmayviclauyyc
  • Reply 12 of 53
    saltyzipsaltyzip Posts: 144member
    Goes to show how overpriced the iPhone X is compared to bill of materials.

    Apple know how to cream in the money from the public, but these profit margins can't last, just a short term ploy to increase revenue to counteract sliding sales volumes.

    How much of that apple profit goes to suppliers though, which would include a large chunk to Samsung?
    edited April 17
  • Reply 13 of 53
    wood1208 said:
    Earlier Critics,gloom and doom,ant-apple camp said iPhone X a failure, Now change to "conspiracy" .
    Nearly every Apple product is called a failure because they usually don't capture high enough market share percentage which is supposedly the only standard to measure success. It's possible Apple products would again require long lines at Apple stores to be said to be successful. It's hard to say because critics set different standards for Apple than for other companies. If car companies were judged as Apple were, only Toyota would have successful products and companies like Ferrari, Mercedes or Porsche would only have failed products. Any low-volume product would immediately be considered a failure.
    StrangeDaysradarthekat
  • Reply 14 of 53
    steven n.steven n. Posts: 1,007member
    Where are they getting this data from considering Apple doesn’t provide sales, revenue or profits by iPhone model? Also how do they know what the profits are for the smartphone industry? What companies provide profit data just for their smartphones?
    But Apple does give values like ASP (Average Selling Price) and total units sold. People then combine this data to form various equations like (%iPhoneX * medianPrice) + (%iPhone8 * medianPrice) + (%iPhone7 * medianPrice) + (%iPhoneSE * medianPrice) = ASP; %iPhoneX+%iPhone8+%iPhone7+%iPhoneSE=100%. They make some educated guesses based on web analytics and come up with a range of potential values.
    SoliStrangeDaystmaythtwatto_cobra
  • Reply 15 of 53
    ksecksec Posts: 1,485member
    asdasd said:
    I am glad they are not above 100% anymore. That was hurting my head. 
    You can view this as other companies gaining on Apple.
  • Reply 16 of 53
    saltyzip said:
    Goes to show how overpriced the iPhone X is compared to bill of materials.

    Apple know how to cream in the money from the public, but these profit margins can't last, just a short term ploy to increase revenue to counteract sliding sales volumes.

    How much of that apple profit goes to suppliers though, which would include a large chunk to Samsung?

    Idiotic post.
    StrangeDaysMuntzwatto_cobra
  • Reply 17 of 53
    SoliSoli Posts: 7,098member
    asdasd said:
    I am glad they are not above 100% anymore. That was hurting my head. 
    If this is based on that same "measurement" where you offset the losses for everyone else in the industry then that means Apple is losing ground. I hope that's not the case. I don't recall where that 100%+ came from, but I think it's been several years since I've read them on this site.
    edited April 17 watto_cobra
  • Reply 18 of 53
    StrangeDaysStrangeDays Posts: 4,563member
    saltyzip said:
    Goes to show how overpriced the iPhone X is compared to bill of materials.

    Apple know how to cream in the money from the public, but these profit margins can't last, just a short term ploy to increase revenue to counteract sliding sales volumes.

    How much of that apple profit goes to suppliers though, which would include a large chunk to Samsung?
    There he is! 
    pscooter63watto_cobra
  • Reply 19 of 53
    tmaytmay Posts: 2,584member
    Link to chart on the dispersion of the profits across top 10 smartphone models worldwide;

    https://www.ped30.com/2018/04/17/counterpoint-apple-hoovers-profits/
    watto_cobra
  • Reply 20 of 53
    Rayz2016Rayz2016 Posts: 3,506member
    saltyzip said:
    Goes to show how overpriced the iPhone X is compared to bill of materials.

    Apple know how to cream in the money from the public, but these profit margins can't last, just a short term ploy to increase revenue to counteract sliding sales volumes.

    How much of that apple profit goes to suppliers though, which would include a large chunk to Samsung?

    The level of desperation in this post is only exceeded by the level of butthurt. 

    People are buying iPhones. Apple is cheating. WAAAAHHHH!

    And are Samsung fans so desperate that they’re now resorting to “Apple profits are going to Samsung” meme? If that’s what it’s come to then I feel sorry for you. 

    Oh, and  none of Apple’s profits go to Samsung. Apple’s eye-watering profits are what is left after they’ve paid the suppliers and manufacturers. Basic accounting. Learn some. 



    MuntzMacProCesar Battistini MazieroStrangeDaysPickUrPoisonwatto_cobra
Sign In or Register to comment.