Saturday, December 5, 2020
Home Lead Story Apple Dominates Global Handset Market by Capturing 66% Industry Profits

Apple Dominates Global Handset Market by Capturing 66% Industry Profits

In coming quarters, the adoption of 5G will drive some upgrades

Apple dominated the global handset market by capturing 66 per cent of industry profits and 32 per cent of the overall handset revenue in the third quarter of 2019 as overall global handset profits declined 11 per cent (year-on-year) to $12 billion, a new report from Counterpoint Research said on Thursday.

The decline was due to an increased mix of entry to mid-tier products and a fall in revenues for key smartphone original equipment manufacturers (OEMs). Within the top 10 brands, only Samsung and Huawei managed to increase their revenue on an annual basis, said the report.

“The loyal premium user base in the major markets like the US, the EU and Japan is one of the reasons that Apple can still operate at a profit level that its competitors can only wish for,” said Karn Chauhan, research analyst with Counterpoint.

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,” Chauhan added. Additionally, the replacement cycle for premium smartphones has lengthened as recent hardware features have been unable to offer an attractive reason to upgrade.

Samsung took 17 per cent of the overall handset industry profits. The increased mix of Galaxy A Series along with the positive start of Galaxy Note 10 Series was the key reason for the growth.

“Chinese smartphone brands operate at low-profit margins, but better than in previous years, even though they are expanding outside China and also penetrating high-tier price bands,” the report mentioned.

Apple
Apple dominated the global handset market by capturing 66 per cent of industry profits and 32 per cent of the overall handset revenue in the third quarter of 2019 as overall global handset profits declined 11 per cent (year-on-year) to $12 billion. Pixabay

Some of these Chinese brands (like Xiaomi and Realme) are also now looking at monetizing their user base by launching services like financial services, IoT products and others.

“However, it is becoming a challenge for Chinese brands to increase their smartphone average selling prices (ASPs) margins due to a combination of longer consumer holding periods and Apple lowering pricing on some key SKUs, which has limited the headroom that Chinese vendors had used to increase their ASPs,” Chauhan elaborated.

ALSO READ: Exposure to Higher Levels of Air Pollution Linked to Depression: Study

In coming quarters, the adoption of 5G will drive some upgrades. For example, in China, Huawei, Oppo, Vivo and Xiaomi will gain from aggressive 5G push and use this opportunity to increase their ASP, said the report. (IANS)

STAY CONNECTED

19,120FansLike
362FollowersFollow
1,777FollowersFollow

Most Popular

The North East Festival Will Be Held In Guwahati, Assam This Year

The North East Festival, a popular event held in Delhi's Indira Gandhi National Centre for the Arts ever since its inception seven years ago,...

India’s E-Commerce Industry Reported Nearly 56 Percent Growth This Festive Season

India's e-commerce industry reported nearly 56 percent growth in order volume this festive season amid the pandemic as compared to the same period last...

‘Operation Talwar’, A Story Of The Valour Of The Indian Navy

BY SHANTANOO MISHRA If the border of a country is secure, then both development and history can be created. All the three armies of India...

Indian American Teen Gitanjali Rao Is ‘Kid Of The Year’ By TIME Magazine

TIME magazine has put an Indian American teen "scientist and inventor" Gitanjali Rao on its first-ever 'Kid of the Year' cover, selected from a...

Christopher Nolan: Indian Films Are Wonderful And Are Kind Of Fundamental

Christopher Nolan feels Hindi films happen to retain the fundamental reasons due to which we enjoy cinema, and that Hollywood has lost some of...

Natural Antioxidants That Helps Body To Deal With Pollution

The air that we all are breathing has reached dangerous levels of pollution yet again. People with no known history of respiratory problems are...

A Focus On Academic Entrepreneurs In India

India is the third-largest tech start-up hub globally, yet academicians are still on the fringes when it comes to entrepreneurship in the country. The...

Indians Willing To Take Salary Cut To Work From Home

Amid the Covid-19 pandemic, at least 54 percent of working Indians said that they love working from home (WFH), of which 34 percent are...

Recent Comments