While Apple doesn’t ship more phones than anyone else, a new report today shows it continues to retain most of the smartphone’s global earnings – even before the launch of the iPhone 13.
In the second quarter of the year, the iPhone accounted for only 13% of global shipments, but that’s a whole other story when it comes to revenue and profit …
Counterpoint says iPhones accounted for 40% of global smartphone revenue and 75% of profits.
Apple was the largest generator of revenue and revenue in the mobile phone business. In the second quarter of 2021, it generated 75% of total operating profit in the mobile phone market and 40% of revenue despite the fact that a relatively moderate 13% contributed to global mobile phone delivery.
Although these performances show the power of the Apple brand, they are still lower than the peak in the fourth quarter of 2020 when its revenue share reached a staggering 50%, compared to 28% in the third quarter of 2020, and its share of profits reached unprecedented 86 % with 51% in the previous quarter. Although there was a significant jump in the share of shipments, from 9% to 17% in the same period, the extent of its share of revenue reflects the success of its first 5G-enabled iPhone series.
The market intelligence company says consumers are more interested in Apple’s ecosystem than ever before.
Apple also benefits from interoperability between its devices. 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. This is made possible by Apple’s significant control over hardware and software, allowing seamless application workflow between multiple devices.
Although this has been the case for some time, it has become particularly pronounced with the stickiness of music, media, news, storage space, and so on. Apple is likely to retain this advantage, allowing it to continue charging premium prices for its phones, thus maintaining high operating profit margins.
Apple’s profitability reflects the fact that it sells only premium devices, while many Android brands sell phones at different prices, some of which are barely profitable or even lose money. The company noted last month that Apple has a 57% share of the $ 400 smartphone market.
When it comes to the remaining 25% of profits, Samsung makes up the bulk of them, while other brands have made negligible profits – even Xiaomi, which ships more phones (and occasionally watches watches) than Apple.
Photo: Gnustang / Unsplash
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