Apple never seizes to surprise us, be it features of its devices, shipments, towering revenue or even capturing a lion’s share of the local handset market operating profits.
The iPhone maker continues to dominate the global handset market despite the rising competition from arch-rival Samsung, and a few other device markers which have set their eyes on the premium handset market. According to the latest report from Counterpoint, Apple captured nearly 80% of the global handset market in terms of profits in Q2 2022, leaving all other players way behind.
Apple’s performance in the market becomes more commendable considering it accounted for less than 14% of the global handset market in Q2 2022.
Samsung, which captured 5% more shipment share in Q2 2022, had pocketed 66% lesser than Apple when it comes to profit.
The gap between Apple and Samsung continues to narrow, albeit at a plodding speed. Since the launch of the iPhone 12 series in Q4 2020, Apple has been outperforming Smausng with each passing quarter, both in terms of handset revenue and profits.
Global handset revenue and profit market Q2 2022
While the global handset market was primarily driven by Apple and Samsung, the overall revenue declined 2% YoY and 15% QoQ to $95.8 billion in Q2 2022. In contrast, the overall profits grew 6% YoY to $13.1 billion. The growth was primarily led by Apple and Samsung which are actively focusing on pushing their ultra-premium range of models, especially to lure existing customers who are looking to upgrade.
Nearly 80% of the global handset market revenue was captured by the top five device makers – Apple, Samsung, xiaomi, Oppo and Vivo.
One of the biggest surprises came in terms of revenue growth clocked by Samsung and Apple. Samsung’s revenue grew 25% while Apple had to settle with just 3% YoY. This is in sharp contrast to the performance of both the companies in terms of the profits share.
So, what caused the market revenue to decline despite the splendid performance of the two major growth drivers of the market? It’s the fall in shipments due to the lockdown in China and ongoing geopolitical uncertainty.
It’s worth noticing that the average selling price (ASP) has gone up by 6% despite the revenue decline in Q2 2022.
In the second half of 2022, the equations are bound to improve given the launch of the iPhone 14 series and festival season sales. Black Friday, and Cyber Monday sales in US and China, besides the regional festivals would push the sales of handsets up. However, the fear of recession is looming large and the crash of currencies against the dollar could also play spoilsports.
Whatever the situation, the recession-resisting iPhone would remain the growth driver given the much-waited upgrade in iPhone 14.