According to the latest research from Counterpoint’s Q4 2017, the smartphone market did not grow as expected while Apple remained the most lucrative brand, catching 86% of the total handset market profits.
“Apple climbed 1 percent (YoY) despite all the iPhone X now being available for only two months in Q4 2017. The iPhone X alone generated 21 percent of total industry earnings and 35 percent of total industry profits during the quarter,” Research Analyst Karn Chauhan said in a statement.
“The talk of iPhone X is very likely to rise 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, for example its three-year-old models, generating the most profits compared to present competing smartphones from different OEMs,” Chauhan informed.
The global smartphone market has reached its peak with longer replacement cycles and crucial smartphone OEMs are under pressure to book profits.
“Chinese OEMs cumulative profits spanned $1.3 billion during Q4 2017. This has been driven by the greater mix of mid to high-end smartphones.
Essential Chinese players such as Huawei, Oppo and Vivo are now looking to scale up the price band, by minding their in-house production capabilities 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 gains compared to other OEMs. Huawei was the top brand among all the Chinese manufacturers, with profit increasing 59 percentage (YoY).
“Having a heightened mixture of flagship sales for key Oriental manufacturers, we expect profit share of Chinese players to grow in the coming quarters,” the report added.