What you need to know
- Counterpoint research says that Apple took home 66% of industry profits in the global smartphone market for Q3 of 2019.
- That's despite the fact it only took 32% of the overall revenue.
- Apple's profit is predicted to increase over the holiday season thanks to the iPhone 11.
Market research from Counterpoint says that Apple took home 66% of industry profits in the global mobile handset market last quarter.
According to their report, market profits declined 11% YoY to $12 billion, due to increasing number of entry/mid-tier products and falling revenues for key OEMs.
Counterpoint claims that Apple captured 66% of industry profits and 32% of overall handset revenue. In part, its success is down to a loyal, premium user based in markets like the U.S., EU and Japan. Counterpoint says Apple is operating "at a profit level that its competitors can only wish for."
The research also praised Apple's overall ecosystem and growing services saying:
Now with a strong service strategy, Apple's overall ecosystem is strong enough to guarantee it a steady inflow of revenue in the coming years. In the immediate future, we believe that Apple's profit for the holiday season will increase with the new line up of iPhones gaining good traction.
Apple's closest rival in the sector, Samsung, took 17% of overall profits. The giant was actually one of only two manufacturers to increase its revenue compared to last year. Despite this growth, there's still a real gap between the two when it comes to pure profit.
Looking ahead, Counterpiont says that the adoption of 5G will drive upgrades and fuel revenue growth for some OEMs who are already preparing for full 5G commercialization. It predicts revenue to grow along with this, however increased costs for materials may not see profits rise "to the same extent."