Apple iPhone X Generated 5X Profit Than Combined Profit of 600 Android OEMs In Q4 2017

Must Read

Elon Musk Added Over $100 Billion To His Net Worth In Just 1 Year, Leaves Jeff Bezos Behind

Jeff Bezos may the world's richest person in the world but it's Elon Musk who has been...

Elon Musk Overtakes Bill Gates And Becomes the 2nd Richest Person in the World

It's been a good week for Elon Musk and his electrical vehicle business Tesla. Earlier this week,...

Free Netflix In India From December: Netflix In A Pursuit Of New Subscribers

A month ago, we reported how Netflix might be brewing something interesting that could lead to a free...

iPhone X might have fallen short of expectations but performed beyond expectations for Apple Inc. (NASDAQ:AAPL) in terms of profit. Apple iPhone X has accounted 35% of total handset industry profit in Q4 2017, making it the most profitable smartphone of the fourth quarter of 2018, reports Counterpoint Research. Overall, Apple’s handset industry profit share clocked 86% in the same quarter.

Apple’s performance becomes more commendable as its handset industry profit share kept increasing despite the global handset industry profit decreased. Apple’s share of handset industry profit in Q4 2017 increased 1% compared to the same quarter a year ago.

Likewise, despite lower than expected sales of iPhone X and availability of just two months, iPhone X accounted little over one-third of total handset industry market profit. The highly criticised iPhone X, especially for its price, also generated 21% of total handset industry revenue alone during the quarter.


Apple iPhone X Profit Share: Bound To Grow

Undoubtedly, iPhone X is still the most aspiring handset even today. In Q4 2017, Apple iPhone X was the most selling smartphone model with the sales figures of 29 million units. The sales of iPhone X is estimated to decline drastically from Q1 2018 onwards, but the profit share of iPhone X, according to Counterpoint, is expected to grow.

The report also highlights another very interesting fact that explains the reason behind the higher resale value of iPhone. 8 out of top 10 smartphone models that generate more profit for OEMs belong to Apple. The longer shelf life of all iPhones, including the models of iPhone that were launched three years ago, ensures that Apple enjoys the lions share of total handset industry profit.


90% of total handset industry profit was accounted by top 10 models only.

The globals smartphone market has started showing signs of stagnation. It was the first time when global smartphone shipments declined by 0.5% in 2017, especially due to below than expected sales of iPhone X and other premium smartphones in Q4 2017. The worldwide smartphone shipments in Q4 2017 declined 8.7% compared to the year-ago quarter.

The stagnation and slowing growth in smartphone shipments have out smartphone OEMs under pressure to book revenue. Companies are leaving no stone unturned to hook customers. The mounting revenue pressure is resulting in increasing ASP (Average Selling Price) of smartphones. In Q4 2017, the cumulative profit of Chinese OEMs crossed $1.3 billion which was largely driven by the sales of mid-to-high end smartphones.


Almost every Chinese OEM is largely dependent on the sales of devices mostly running on Android. Unlike Apple, Android OEMs don’t have a big cushion of profit due to the rising competition in the market which is flooded with Android devices. And that’s why the profit Apple minted from the sales of iPhone X is five folds more than the combined profit of over 600 Android manufacturers in Q4 2017. 

Overall, the flagship models of Apple and Samsung account for the majority of their handset industry profit. Among all the Chinse brand, it is Huawei that has led the chart as it handset industry profit increased by 59% YoY in Q4 2017.


Please enter your comment!
Please enter your name here

Latest News

Facebook’s Past Comes Back To Bite As South Korea Fines Them For 2018 Scandal

The social media behemoth Facebook Inc. (NASDAQ:FB) has once against proved they are the true arch-nemesis of...

Amazon Future Group Dispute Deepens As Singapore Court Turns Down Future Group Plea

The dispute between Amazon and Future Retail is, apparently, far from over anything soon as the Singapore International Arbitration Centre (SIAC) has...

Google Pay Fee On Instant Transfer: An Indication Of Google’s Aggressive Monetisation Strategy?

Google has decided to levy fee on instant payment, starting from the US market. A few days back, Google...

Twitter Account Verification Is Back, But Has it Lost Its Mojo?

Twitterati queue up! As the Twitter account verification process which is responsible for awarding blue badges prepares to...

Paytm Lawsuit Impact: TRAI Slaps Fine On Jio, Airtel, BSNL And Other Telcom Operators

The emergence of e-wallets brought along with itself a big uprise in notorious phishing scammers who prey on unsuspecting consumers by pretending...

MobiKwik Takes A Dig At Paytm After The Recent App Ban

The ongoing China-India border tension is resulting in more apps getting banned, and every time that happens the Indian startup unicorn Paytm...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This