Apple takes two thirds of the pie in global smartphone profits with only 12 per cent market share, says report

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Although Apple continues to garner the lion’s share of smartphone industry profits, the company has seen its dominance weaken over the years.

It might only have a 12 per cent market share in global smartphone shipments, but US technology giant Apple captured 66 per cent of industry profits and 32 per cent of the overall revenue in the third quarter of 2019, according to a new report from Counterpoint Research.

Samsung took 17 per cent of the overall handset industry profits in the period. Counterpoint did not provide specific figures for the remaining major brands, although a chart embedded in its report suggests that Huawei earned about 10 per cent of industry profits in the quarter, Oppo and Vivo earned about 5 per cent each, and Xiaomi was well below 5 per cent.

Separately, Android phone makers – especially Chinese brands which used to operate on low-profit margins – have boosted profits by expanding their businesses outside China and moving to high-tier price bands. “Huawei, Oppo, Vivo and Xiaomi will gain from an aggressive 5G push and use this opportunity to increase their average selling prices,” said Chauhan.

 

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