According to the latest report provided by market research agency Counterpoint, the total profit of the global mobile phone market in the third quarter of this year was 12 billion US dollars, a decrease of 11% compared with the same period last year. That’s mainly due to the decrease of the amount of high-end smartphones sold. Because, after all, 5G is around the corner and some may want to wait replacing their phone until a 5G flagship alternative is available.
Apple has the Highest Profits in the Phone Industry
Now, always according to the data from Counterpoint, Apple crushed its rivals again in the third quarter of this year, getting 66% of the profits of the smartphone industry, thus winning the profit race. While all the competitors only made about a third of the total profits.
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As we can see on the chart, Samsung ranked second, accounting for 17% of the industry’s profits. With the success of the Galaxy A series and the launch of the Galaxy Note 10 series as the main reasons for the growth.
The report further pointed out that due to the longer replacement cycle and Apple’s reduction of the price of certain key products i.e. iPhone 11, Chinese smartphone brands have had an harder time increasing their profit margins. That said, Chinese phone makers have always operated at low-profit margins but these did grow slightly over previous years.
Finally, the analysts believe that with a strong service strategy, Apple’s overall ecosystem is strong enough to ensure stable revenue growth in the coming years.