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Home Technology

Apple continues to dominate global smartphone profits

Runehq by Runehq
October 20, 2021
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Apple continues to dominate global smartphone profits
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Follow AppleInsider, Apple is credited with increasing smartphone sales in the second quarter of 2021 due to high demand for iPhone 12 5G models. Now, new research from Counterpoint Research shows that Apple is also the largest revenue and profit generator in the market.

Apple continues to dominate global smartphone profits

The success of the iPhone 12 series has brought a profit advantage to Apple

“For the second quarter of 2021, Apple accounted for 75% of the overall handset market operating profit and 40% of revenue, despite contributing only 13% of sales,” Counterpoint Research said. While this performance shows the strength of the Apple brand, it is still below the peak of Q4 2020 when the revenue share hit a staggering 50%, up from 28% in Q3 2020 and profit margin hit an unprecedented 86%, up from 51% in the previous quarter.”

Counterpoint Research notes that Samsung typically trails Apple in terms of revenue and profit share, despite being the largest global smartphone supplier in terms of annual output.

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Although it doesn’t publish figures for Samsung, Counterpoint Research shows the gap between Samsung and Apple. In terms of revenue share, Apple has surpassed Samsung by 25%, while operating profit is also higher than its Korean rival by 62%.

In addition, Counterpoint Research also said that Huawei’s collapse after the US imposed sanctions also helped Apple “reduce one competitor”. At the same time, Counterpoint Research said that although Xiaomi is focusing on increasing its shipments, the company’s next goal is to increase profits from products sold.

“Apple will likely retain the edge, allowing it to continue charging higher prices for its handsets, thus maintaining high operating margins,” Counterpoint Research added.

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Tags: ApplecontinuesCounterpoint ResearchdominateGlobalHandsetiPhone 12IPhone 12 5GProfitprofitssalesSamsungsmartphoneXiaomi
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