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:
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."
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Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.
Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9