A new report claims that devices like the iPhone 12 and others have helped Apple rake in most (75%) of the operating profits and 40% of the revenue generated via global smartphone sales in Q2 2021, despite accounting for just 13% of total shipments.
This, despite Chinese companies like Xiaomi and Realme recording record growth during the same period, with the former bagging second place in terms of the number of smartphone units sold.
While the report by Counterpoint Research does prove Apple as the dominator of the industry, this year’s figures are actually lower than the ones from Q4 2020 where the company recorded a staggering 50% revenue share. Its profits also touched an unprecedented 86%, up from 51% in the previous quarter.
Do keep in mind here that since Apple doesn’t share its sales and shipment figures for its iPhone, the figures are based on Counterpoint’s own calculations and not official information from Apple.
Anyway, the Q4 2020 feat can be attributed to Apple’s iPhone 12 series that sold like hotcakes thanks to the introduction of 5G support. The company saw a jump from 9% to 17% in its shipment share during the time. Other contributing factors include interoperability between Apple devices, made possible by Apple’s significant control over both hardware and software, enabling a seamless shift of work on an app between multiple devices.
Apple is likely to retain such a position and continues to work on improving its services while also charging premium prices for its handsets, thus keeping its operating profit margins untouched by any other.
The Cupertino-based tech behemoth is followed by South Korea’s Samsung which tops the list in another factor – annual global smartphone shipments. But despite its massive sales, Samsung has still remained number two in terms of profits for several past quarters.
Other than the relatively stable top 2 spots enjoyed by Apple and Samsung, the rest of the rankings have seen a major shift due to the US ban on Huawei. Companies like Xiaomi, Oppo, and Vivo benefited from it majorly, creeping into the gaping hole left by Huawei. They were the biggest revenue generators respectively after Apple and Samsung in Q2 2021.
But while Xiaomi has seen steady growth in terms of shipments, its profit generation has not been satisfactory. This isn’t anything unexpected though considering Xiaomi has been prioritizing its number of shipments over everything else. It will likely be focusing on increasing its profits only after capturing a sizeable chunk of the market.
RELATED:
- Apple AirPods 3 expected to launch next week along with M1X MacBook Pro
- Upcoming M1X-powered Apple MacBook Pro model’s specs leak ahead of launch
- Apple schedules event for Oct. 18, new Apple M1X Macs expected
- Apple iPhone X modded to replace Lightning port with USB Type-C port
