According to the latest study from Counterpoint’s Q4 2017, the smartphone market did not grow as anticipated while Apple remained the most lucrative brand, catching 86 percent of the total handset market profits.
“Apple grew 1 per cent (YoY) despite the iPhone X now being available for just two months in Q4 2017. The iPhone X alone generated 21 percent of total industry earnings and 35% of total industry earnings during the quarter,” Research Analyst Karn Chauhan said in an announcement.
“The share of iPhone X is likely to grow as it progresses farther into its life-cycle. Additionally, the longer shelf life of iPhones ensured that Apple still has eight from top 10 smartphones, including its three-year-old models, making the most profits compared to current competing smartphones from other OEMs,” Chauhan informed.
The global smartphone market has already reached its summit with longer replacement cycles and crucial smartphone OEMs are now under pressure to book profits.
“Chinese OEMs cumulative profits crossed $1.3 billion during Q4 2017. This has been driven by the increased mix of mid to high-end smartphones. In reality, the average selling price (ASP) of the flagship devices also improved YoY,” added Associate Director Tarun Pathak.
Key Chinese gamers such as Huawei, Oppo and Vivo are now seeking to scale up the price band, by minding their in-house manufacturing capacities and bringing innovation to their devices, he added.
IPhone X made 5 times greater profits than the combined gains of over 600 Android OEMs during Q4 2017.
Apple and Samsung flagship models direct in regard to profits as compared to other OEMs. Huawei was the top brand among most of the Chinese manufacturers, with gain increasing 59 percentage (YoY).
“With a heightened mixture of flagship sales for key Chinese brands, we expect gain share of Chinese players to increase in the coming quarters,” the report added.