Apple earned 66% of the entire smartphone market's profits in 2019

Posted:
in General Discussion edited August 2020
Research claims that while the entire market's smartphone profits declined by around a tenth in 2019, Apple continued to dominate with 66% of all profits and the nearest competitor being Samsung on just 17%.

Apple's iPhone 11
Apple's iPhone 11


The global profits from cell phone sales fell by 11% in the third quarter of 2019, earning companies an estimated total of $12 billion. Apple has again dominated those profits, though, earning a reported 66% or almost $8 billion. When compared to revenue instead of profits, Apple remains in the lead with 32%.

According to Counterpoint Research, the remaining 34% of profits was chiefly divided between Samsung, Huawei, Oppo, Vivo and Xiami. Of all of these, Samsung was the closest to Apple, but it only earned 17% of the profits.

These figures are broadly similar to 2018's, and like that year's, doesn't include companies that didn't turn a profit. But, 2019 marks growth for Samsung, which Counterpoint ascribes chiefly to the launch of the Galaxy Note 10 Series.

The research firm believes the overall decline in smartphone profits in the last quarter is because premium smartphones are facing greater competition from mid-tier devices.

Counterpoint also reports that Chinese brands are expanding outside China, and that they are providing flagship phones at more affordable prices. These firms are also said to be looking at providing an ecosystem that includes financial services.

The most profitable smartphone handset companies. (Source: Counterpoint)
The most profitable smartphone handset companies. (Source: Counterpoint)


The ability of Chinese firms to increase their profits has been hampered, however, by users holding on their devices for longer -- and Apple introducing price cuts and trade-ins.

The company believes that Apple's ecosystem is strong enough to guarantee it steady revenue for years, but also that it will see increased profits this holiday season with the iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max.
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Comments

  • Reply 1 of 47
    MacProMacPro Posts: 19,500member
    Doomed I tell you.
    sidricthevikingrazorpitpscooter63StrangeDayswatto_cobra
  • Reply 2 of 47
    BebeBebe Posts: 145member
    Greedy Apple 

    /s
    watto_cobra
  • Reply 3 of 47
    razorpitrazorpit Posts: 1,796member
    MacPro said:
    Doomed I tell you.
    Same thing I thought when I saw they only had 66% of the profits.  ;)
    netmagewatto_cobra
  • Reply 4 of 47
    How would this research firm know? Apple doesn’t release P&L statements by product.
    watto_cobra
  • Reply 5 of 47
    Well done Samsung.  The more competition the better!
    gilly33
  • Reply 6 of 47
    razorpit said:
    MacPro said:
    Doomed I tell you.
    Same thing I thought when I saw they only had 66% of the profits.  ;)
    Didn't Apple use to make 95% of the profits?
    netmagegatorguydesignrCarnage
  • Reply 7 of 47
    Apple has single-handily proven how lucrative it is to gouge your customers. Suckers. I say that not because Apple customers pay too much for products and services, but rather they demand so little from Apple in turn. Gone is the day when Apple gave its customers the best user experience possible for a modest premium. Instead, it delivers a hobbled user experience at obscene premiums. Hey, but at least shareholders are happy. Just for the record, I'm still a sucker too. But I rue every Apple product purchase and buy the cheapest offering since it makes nothing I want. I simply replace failed products, treading water, hoping Apple will return to its model of excellence when Cook steps down.
    muthuk_vanalingam
  • Reply 8 of 47
    lkrupplkrupp Posts: 10,013member
    Rajka said:
    Apple has single-handily proven how lucrative it is to gouge your customers. Suckers. I say that not because Apple customers pay too much for products and services, but rather they demand so little from Apple in turn. Gone is the day when Apple gave its customers the best user experience possible for a modest premium. Instead, it delivers a hobbled user experience at obscene premiums. Hey, but at least shareholders are happy. Just for the record, I'm still a sucker too. But I rue every Apple product purchase and buy the cheapest offering since it makes nothing I want. I simply replace failed products, treading water, hoping Apple will return to its model of excellence when Cook steps down.
    What you are experiencing is called Stockholm Syndrome. It’s a psychological disorder in which the victim becomes attached to their tormentor and continues to accept the abuse. You need to sort this out before it damages your psyche. Your 35 posts here are disturbing. Continuing to buy from a company you despise is not healthy. We’ll pray for you. /s
    edited December 2019 gilly33tmayRayz2016StrangeDaysdedgeckosocalbrianlolliverrazorpitwatto_cobrachasm
  • Reply 9 of 47
    Everyone knows it's market share that really matters, just ask the pundits.
    StrangeDayswatto_cobra
  • Reply 10 of 47
    Rayz2016Rayz2016 Posts: 6,957member
    razorpit said:
    MacPro said:
    Doomed I tell you.
    Same thing I thought when I saw they only had 66% of the profits.  ;)
    Didn't Apple use to make 95% of the profits?
    According to pundits, Apple used to have 103% of the profits, which tell you everything you need to know about pundits. 
    randominternetpersonrazorpitwatto_cobraCarnagejony0
  • Reply 11 of 47
    Rayz2016Rayz2016 Posts: 6,957member

    Rajka said:
    Apple has single-handily proven how lucrative it is to gouge your customers. Suckers. I say that not because Apple customers pay too much for products and services, but rather they demand so little from Apple in turn. Gone is the day when Apple gave its customers the best user experience possible for a modest premium. Instead, it delivers a hobbled user experience at obscene premiums. Hey, but at least shareholders are happy. Just for the record, I'm still a sucker too. But I rue every Apple product purchase and buy the cheapest offering since it makes nothing I want. I simply replace failed products, treading water, hoping Apple will return to its model of excellence when Cook steps down.
    So you buy products you think aren’t any good, in the hope that a product that you haven’t seen yet is perfect. 

    That is so pathetic I almost feel sorry for you.  
    StrangeDayssocalbrianlolliverRonnnieOrazorpitwatto_cobrabadmonkjony0
  • Reply 12 of 47
    avon b7avon b7 Posts: 6,339member
    onepotato said:
    Everyone knows it's market share that really matters, just ask the pundits.
    No need to ask only the 'pundits'. If you plan on offering services or consumables to your customers, marketshare is a key metric. If your platform depends on active, revenue generating developers, marketshare is also a key factor.

    All of Apple's move's over the last few years have included measures to shore up handset sales and increase them. It has been a radical shift but in spite of those measures, sales have remained flat or dipped YoY.

    Even the most persistent rumours for 2020 include yet more measures to stimulate handset growth (new SE model released out of the habitual refresh).

    At the end of the day we are all 'pundits', just in different capacities. That includes Apple management, shareholders, users, competitors.

    When Apple releases software targeting Android users to make switching easier, by definition, they are chasing marketshare.

    When Apple opens up its services to Android users it is also chasing marketshare.

    Perhaps the question you should ask yourself is how much marketshare is necessary to keep the business healthy. But at the end of the day it is still marketshare.

    You should also compare Apple's handset business model and compare it to 2015. What has changed and more importantly, why?

    There have been massive changes and they didn't come about through experimentation. They came about through necessity.


    muthuk_vanalingam
  • Reply 13 of 47
    Rayz2016 said:
    That is so pathetic I almost feel sorry for you.  
    Every once in a while, I go back and review the Rules of the Troll thread, just to keep my compass aligned...
    (Some responses never age. Remember, this is seven years old.)
    edited December 2019 StrangeDayslolliverwatto_cobra
  • Reply 14 of 47
    sflocalsflocal Posts: 5,988member
    Rajka said:
    Apple has single-handily proven how lucrative it is to gouge your customers. Suckers. I say that not because Apple customers pay too much for products and services, but rather they demand so little from Apple in turn. Gone is the day when Apple gave its customers the best user experience possible for a modest premium. Instead, it delivers a hobbled user experience at obscene premiums. Hey, but at least shareholders are happy. Just for the record, I'm still a sucker too. But I rue every Apple product purchase and buy the cheapest offering since it makes nothing I want. I simply replace failed products, treading water, hoping Apple will return to its model of excellence when Cook steps down.
    Apple continues to provide the best experience for their customers.

    You on the other hand try passing your opinions as fact.  Go away and let the adults talk.
    StrangeDaysdedgeckopscooter63socalbrianlolliverRonnnieOwatto_cobrabadmonkjony0
  • Reply 15 of 47
    Rajka said:
    Apple has single-handily proven how lucrative it is to gouge your customers. Suckers. I say that not because Apple customers pay too much for products and services, but rather they demand so little from Apple in turn. Gone is the day when Apple gave its customers the best user experience possible for a modest premium. Instead, it delivers a hobbled user experience at obscene premiums. Hey, but at least shareholders are happy. Just for the record, I'm still a sucker too. But I rue every Apple product purchase and buy the cheapest offering since it makes nothing I want. I simply replace failed products, treading water, hoping Apple will return to its model of excellence when Cook steps down.
    Pass whatever mind-altering substances you are on, please. Apple continues to top consumer satisfaction surveys, and the resale value for Apple gear backs up their value in the marketplace. I've sold used Macs, Watches, iPads, and even AirPods. Used knockoff gear is hiding in drawers and landfills. 

    As far as pricing, again more bullshit. Services: iCloud is cheaper than Dropbox, ATV+ is cheap, Arcade is cheap, Music is about the same as Spotify (I have family plan so it's cheap to me). Hardware: $199 Watch, $329 iPad, $449 iPhone, $799 Mac, $1099 MB, etc.. All reasonable entry points, going up as much as you wish to spend. And guess what? The knockoff brands all sell expensive smartphones now, too. Oops. 

    Apple famously does not manage to the stock price. They manage for delighting the customer. Plenty of case studies and essays about it.
    dedgeckosocalbrianlolliverRonnnieOwatto_cobrajony0
  • Reply 16 of 47

    avon b7 said:
    onepotato said:
    Everyone knows it's market share that really matters, just ask the pundits.
    No need to ask only the 'pundits'. If you plan on offering services or consumables to your customers, marketshare is a key metric. If your platform depends on active, revenue generating developers, marketshare is also a key factor.

    All of Apple's move's over the last few years have included measures to shore up handset sales and increase them. It has been a radical shift but in spite of those measures, sales have remained flat or dipped YoY.

    Even the most persistent rumours for 2020 include yet more measures to stimulate handset growth (new SE model released out of the habitual refresh).

    At the end of the day we are all 'pundits', just in different capacities. That includes Apple management, shareholders, users, competitors.

    When Apple releases software targeting Android users to make switching easier, by definition, they are chasing marketshare.

    When Apple opens up its services to Android users it is also chasing marketshare.

    Perhaps the question you should ask yourself is how much marketshare is necessary to keep the business healthy. But at the end of the day it is still marketshare.

    You should also compare Apple's handset business model and compare it to 2015. What has changed and more importantly, why?

    There have been massive changes and they didn't come about through experimentation. They came about through necessity.
    Nah. Your "but market share!" examples are services. Services which are not tethered to hardware, so there's absolutely no reason not to sell Apple Music on Android. Services is a different business model than hardware. Apple is king of hardware, and is also adding services. And interestingly it became king of hardware while needing developers, yet still didn't foolishly chase market share by making cheapies like your Chinese knockoffs. Just like they didn't make netbooks.

    Even during the heyday of peak iPhone, everyone knew and commented upon that the historic, never-before-seen-on-earth success of the iPhone could not last forever. That is normal, expected, and not the sign of desperate flailing you like to pretend it is. Absolutely no one thought it would be otherwise. iPhone has generated more revenue than anything before it and remains the most successful product in history for the most successful public company in history.
    edited December 2019 tmaydedgeckoRonnnieOwatto_cobra
  • Reply 17 of 47

    Rayz2016 said:
    That is so pathetic I almost feel sorry for you.  
    Every once in a while, I go back and review the Rules of the Troll thread, just to keep my compass aligned...
    (Some responses never age. Remember, this is seven years old.)
    Ha! Hadn't read that. Funny stuff. A shame its writer went off the deep edge with his own constant nonsense and got himself banned. 
    pscooter63muthuk_vanalingamlolliverwatto_cobra
  • Reply 18 of 47
    hentaiboyhentaiboy Posts: 1,249member

    Rayz2016 said:
    That is so pathetic I almost feel sorry for you.  
    Every once in a while, I go back and review the Rules of the Troll thread, just to keep my compass aligned...
    (Some responses never age. Remember, this is seven years old.)
    Ha! Hadn't read that. Funny stuff. A shame its writer went off the deep edge with his own constant nonsense and got himself banned. 
    I miss Tallest Skil! And Sog35...
    muthuk_vanalingamlolliver
  • Reply 19 of 47
    thedbathedba Posts: 682member
    avon b7 said:
    onepotato said:
    Everyone knows it's market share that really matters, just ask the pundits.
    No need to ask only the 'pundits'. If you plan on offering services or consumables to your customers, marketshare is a key metric. If your platform depends on active, revenue generating developers, marketshare is also a key factor.

    All of Apple's move's over the last few years have included measures to shore up handset sales and increase them. It has been a radical shift but in spite of those measures, sales have remained flat or dipped YoY.

    Even the most persistent rumours for 2020 include yet more measures to stimulate handset growth (new SE model released out of the habitual refresh).

    At the end of the day we are all 'pundits', just in different capacities. That includes Apple management, shareholders, users, competitors.

    When Apple releases software targeting Android users to make switching easier, by definition, they are chasing marketshare.

    When Apple opens up its services to Android users it is also chasing marketshare.

    Perhaps the question you should ask yourself is how much marketshare is necessary to keep the business healthy. But at the end of the day it is still marketshare.

    You should also compare Apple's handset business model and compare it to 2015. What has changed and more importantly, why?

    There have been massive changes and they didn't come about through experimentation. They came about through necessity.


    Correction.
    Marketshare is a metric. Not necessarily a key metric. This thinking comes from the days of Windows OS where having over 95% share proved that MS was successful and Apple was not. 

    However today even with minority marketshare Apple has turned that notion upside down. 

    The rest of your post is how Apple would like more marketshare, however you fail to mention that they will not go after that goal at all costs. They have kept healthy margins that has enabled them to invest in other technologies like Apple watch, AirPods, HomePod, AppleTV+ etc. And this is what makes them special in the eyes of many of us here. Ecosystem is what keeps many of us coming back for more than just individual features on a smartphone. 
    tmayStrangeDayswatto_cobrajony0
  • Reply 20 of 47
    Wait... so we are only talking about Apple getting the bulk of profits, but not including the 4th quarter of the year, which historically is its biggest quarter (and blown away the competition’s profit collection has historically shown). 

    66% of the annual collection of profits seems way too low.  Even as a wild ass guess given none of this is explicitly broken out by companies. And Apple’s profits have been shifting to wearables and services. iPhone profits have been trading down, because Apple has been shifting since Apple Watch.

    So much crap being bandied about here as something to fuss over. It’s mostly inaccurate. 
    watto_cobra
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