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iPhone X gets 35% of total handset industry profits in Q4 2017

Apple and Samsung flagship models lead in terms of profits as compared to other OEMs

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Top apps using Siri Shortcuts to make daily tasks easier: Apple. Pixabay
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As global handset profits dipped 1 per cent (year-on-year) in the fourth quarter of 2017, Apple X alone generated 35 per cent of the total handset industry profits, helping the iPhone maker grow 1 per cent (YoY) in the same quarter, a new report said on Tuesday.

According to the latest research from Counterpoint’s Q4 2017, the premium smartphone market did not grow as expected while Apple remained the most profitable brand, capturing 86 per cent of the total handset market profits.

Apple is also working on the new iPhone. IANS

“Apple grew 1 per cent (YoY) even with the iPhone X being available for only two months in Q4 2017. The iPhone X alone generated 21 per cent of total industry revenue and 35 per cent of total industry profits during the quarter,” Research Analyst Karn Chauhan said in a statement.

“The share of iPhone X is likely to grow as it advances further into its life-cycle. Additionally, the longer shelf life of all iPhones ensured that Apple still has eight out of top 10 smartphones, including its three-year-old models, generating the most profits compared to current competing smartphones from other OEMs,” Chauhan informed.

The global smartphone market has already reached its peak with longer replacement cycles and key smartphone OEMs are now under pressure to book profits. “Chinese OEMs cumulative profits crossed $1.3 billion during Q4 2017. This was driven by the increased mix of mid to high-end smartphones. In fact, the average selling price (ASP) of their flagship devices also increased YoY,” added Associate Director Tarun Pathak.

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Key Chinese players like Huawei, OPPO and Vivo are now looking to scale up the price band, by leveraging their inhouse manufacturing capabilities and bringing innovation to their devices, he added. iPhone X generated 5 times more profits than the combined profits of over 600 Android OEMs during Q4 2017.

Apple and Samsung flagship models lead in terms of profits as compared to other OEMs. Huawei was the leading brand among all the Chinese brands, with profit increasing 59 per cent (YoY). “With an increased mix of flagship sales for key Chinese brands, we expect profit share of Chinese players to grow in the coming quarters,” the report added. IANS

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Apple Appoints Ashish Chowdhary as its India Operation Head

Apple is currently assembling iPhone 6S in India with its partner Wistron

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Apple appoints Nokia veteran Ashish Chowdhary to lead India operations. Flickr Commons

In a fillip to Apple CEO Tim Cook’s big future plans for the Indian market, Apple has appointed Ashish Chowdhary, Chief Customer Operations Officer at Nokia Networks, as its India operation head, reliable industry sources told IANS on Tuesday.

Chowdhary will join as Apple India head from January next year, the sources confirmed.

The decision to hire Chowdhary is a testament to the fact that Apple is aiming for a really long-term growth in a price-sensitive market where Apple is an aspirational brand and usually bought by those who have high spending power or can go for older generation phones for affordability.

In line with the development, Nokia also announced on Tuesday changes in the composition of its group leadership team, declaring that Chowdhary will “leave Nokia at the end of 2018 after 15 successful years.”

“Chowdhary will continue to lead Customer Operations and remain a member of the Nokia Group Leadership Team until the end of 2018. He will then leave Nokia to take a leadership position in another company,” said Nokia.

According to industry sources, Apple has roped in Chowdhary — who has a sound global as well as local knowledge of the industry — to get a bigger slice of a market that has nearly 450 million users and is one of the fastest growing, after China and the US.

Apple India is currently under Michel Coulomb who took over from Sanjay Kaul in December last year.

Chowdhary has 25 years of international experience in the enterprise and telecom sectors. As Chief Business Officer, he was responsible for Nokia Networks’ sales and operations globally.

He has held various leadership positions, including Head of Asia Middle East and Africa and prior to that, Head of Global Services Business Unit.

Both these units contributed nearly half of the company’s revenues and were key to the successful transformation of Nokia.

Apple
An Apple store in Woodbridge, Virginia. (VOA)

The appointment comes at a time when the iPhone maker is seeking tax relief and other incentives from the government to begin assembling more handsets in the country and its proposal to set up a manufacturing unit is also being evaluated.

Breaking his silence on Apple’s India presence, CEO Tim Cook admitted on November 1 that his business was flat in the country in the fourth quarter amid weak currency trends.

Cook, however, stressed he is still a big believer in the Indian middle class.

The Apple CEO also said that he has had really great productive discussions with the Indian government.

“We’ve had really great productive discussions with the Indian government, and I fully expect that at some point, they will agree to allow us to bring our stores into the country,” Cook responded to a question during the analysts’ call.

Apple is currently assembling iPhone 6S in India with its partner Wistron.

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“I am a big believer in India. I am very bullish on the country and the people and our ability to do well there,” Cook said.

Cook is also aware of the tremendous growth opportunity in India.

“There’s a huge number of people that will move into the middle class. The government has really focused on reform in a major way and made some very bold moves.

“I applaud them for doing that and I can’t wait for the future there,” Cook told the analysts over call. (IANS)