52326 Apple Is Once Again the Most Profitable Smartphone Brand in the World

Apple Is Once Again the Most Profitable Smartphone Brand in the World

Data provided by research firm Counterpoint shows that Apple recorded the biggest profit in the third quarter of 2017 in the mobile industry, with long-time rival Samsung taking the runner-up place, but with more than half its share.

Counterpoint says Apple profit share accounted for 59.8 percent, while Samsung is second with “just” 25.9 percent. And while the difference between the two is huge, this is actually a decline for the iPhone maker from 85.9 percent year-over-year.

Huawei is third in the charts with a growth from 3.3% to 4.9%, followed by OPPO with 4.0%. Vivo is last in the top with 3.1%.

The research firm explains that Chinese phone manufacturers are growing at a fast pace and the last quarter their cumulative profit cross $1.5 billion for the first time.

“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. 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,” Counterpoint Associate Director, Tarun Pathak, says.

Apple’s per unit profit reached $151

On the other hand, Apple continues to be the king, and the company estimates the profit will increase in the next quarter thanks to the iPhone X. Apple’s anniversary model went on sale on November 3, and due to supply issues, sales so far have been estimated to be slightly below expectations, with a substantial boom expected in early 2018.

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“Apple still generates more than US$150 profit per iPhone sold and this will continue to grow into the holiday season quarter buoyed by the high price iPhone X series. 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,” Counterpoint’s Research Director, Neil Shah, added.

The research notes that Apple’s per unit profit is no less than 5 times higher than Samsung’s and 15 times higher than the one of a Chinese brand, reaching $151 the last quarter. Samsung’s currently at $31, while Chinese companies topped at $15.

Apple's profit per unit is 5x higher than Samsung's

Apple’s profit per unit is 5x higher than Samsung’s
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