Apple earns 75% of smartphone profits, despite lower sales than Samsung

The iPhone also accounted for 40% of all shipments.
Photo: Apple

According to a new report, the iPhone is responsible for a whopping three-quarters of the total profits made in the global smartphone market. This is despite Apple recording lower sales than Samsung and Xiaomi.

Cupertino’s mobile phone business actually accounted for only 13% of all smartphones shipped during the second quarter of 2021. But thanks to the large profit margins it enjoys on almost all of its products, it is by far the largest revenue.

The iPhone still brings in more money than any other phone

Apple has never been the world’s largest smartphone maker. It was number two for quite some time, but that title was stolen by a copy of Xiaomi earlier this year. However, Apple is at the top where it is most important – in profit and revenue.

In the last quarter, the iPhone contributed 40% of global smartphone revenue – more than twice as much as Samsung, which ranked second. It also earned 75% of total profits, more than any other smartphone maker combined.

These figures, despite incredibly promising things for Apple, are not as spectacular as those enjoyed by Apple during the iPhone’s peak in the last quarter of 2020, when it accounted for 50% of global smartphone revenue.

5G great success for iPhone

However, the iPhone has seen an increase in shipments, and Counterpoint attributes this to the success of Apple’s first 5G-enabled devices, which first arrived last fall as the iPhone 12 series, and interoperability between different products.

“The convenience of switching from a Mac, iPad and iPhone encourages users of one Apple device to stay in Apple’s ecosystem by purchasing other branded devices,” the report said.

Counterpoint expects Apple to “retain this advantage,” which would allow it to maintain its higher prices and profit margins for the foreseeable future.

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Naveen Kumar

Friendly communicator. Music maven. Explorer. Pop culture trailblazer. Social media practitioner.

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