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

Must Read

Over 13.6 Crore Jobs in India Would Be Lost Due to Coronavirus Outbreak!

The 21-day lockdown induced by the deadly outbreak of the Covid-19 has completely dismantled and disrupted the...

Zomato Sets Eyes On $10.2 Billion Online Grocery Delivery Market in India

The 21-day nationwide lockdown imposed in India due to the Covid-19 outbreak fueled a massive change in...

Apple iPhone 9 Launch: Not The Date, The Price That Could Turn Heads!

The much-awaited launch of iPhone 9, aka iPhone SE 2, could take place on Sunday, April 5,...

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.

Advertisements

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.

Advertisements

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.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

COVID-19 Triggers Rise In Unemployment in India: 50 Million Jobs Lost In Just 2 Weeks

The state of unemployment in India was never so bad as now. The country is now staring...

Skype Trying To Replicate Zoom’s Success With Its New Feature!

It seems like the meteoric rise of the Zoom video conferencing app amid the work from the home situation caused by the...

Should Apple Take Advantage Of Disney’s Stock Crash And Acquire It?

The Covid-19 outbreak caused Disney’s stock to fall below $100 for the first time in the last one and a half year...

Covid-19 Thrusts Graduating Students From IIM and IITs Towards Uncertain Future!

The mayhem of the COVID-19 outbreak has been affecting all parts of the economy and now it has finally arrived at the...

Will YouTube’s New Feature Kill TikTok?

After Facebook, it's Youtube that has been closely monitoring the exceptional growth of TikTok. And, the new feature of YouTube is a...

Facebook Messenger Desktop App: The Rise Of Zoom Has Caught The Attention Of Zuckerberg?

Facebook Messenger Desktop app is making waves, and all because of an unexpected and sudden rise of Zoom - a video conferencing...

In-Depth: Dprime

YouTube Should Have Bid Adieu To Dislike Button Much Earlier?

Online video sharing platform YouTube can be a ruthless place for content creators targeted by 'dislike mobs'. And the site owners totally understand that...

Facebook Has Pulled Off A Masterstroke By Integrating Its ‘Family Of Apps’?

It’s indeed hard to believe that ONE man sitting at Menlo Park, oversees how nearly a third of the world’s population interacts with each...

Facebook’s Crunch Conquest: By Relying Largely On The US Market, Is Facebook Running a Risk?

Two billion! That's Facebook, Inc. (NASDAQ: FB) for you - Right when you thought that this social-media giant has already connected the entire world, it's...

More Articles Like This