For all the Apple is doomed memes floating around in recent years, you would think someone would check out the competition to see how well their flagship smartphone products are doing. Well, someone did. Counterpoint Research does research guesstimates around the world and determined iPhone X rakes in 35-percent of all smartphone profits.
iPhone X is tops on the list but Apple’s various iPhones also comprise the Top 5 spots. Samsung’s Galaxy models come in at #6 and #8. Eight of the first 10 on the list are iPhones.
What does that say?
First, it says Apple’s iPhone owns about 85-percent of all smartphone profits. Second, it says Samsung makes a profit with its Galaxy models and probably nothing else (except everything else, if you understand Samsung). Can you see why marketshare is the least valuable of business metrics?
Profits, people. Profits.
Research is, at best, something of a guesstimate, so take those metrics with a grain of salt. There is another number not mentioned and a few questions not asked or answered.
How much money do all the other 600 or so Android smartphone makers, well, make? The second question is simple. How do iPhone competitors stay in business? We can understand why Samsung does well to copy Apple in the premium end of the product spectrum. That’s where the money is and that’s where the profits are.
How do all those other iPhone competitors stay in business?
iPhone X generated 5 times more profits than the combined profits of over 600 Android OEMs during Q4 2017
Completely accurate or not, that’s a stunning admission that the industry is made up of Apple, Samsung, a few minor players, and a vast list of other smartphone makers that do not make money.
iPhone X generated 5 times more profits than the combined profits of over 600 Android OEMs during Q4 2017… Chinese OEMs cumulative profits crossed $1.3 billion during Q4 2017. This was driven by the increased mix of mid to high-end smartphones.
The premium end of the smartphone spectrum is where the money is. Apple owns that end of the spectrum, for now, yet that’s where the competition is heating up, so Apple will have more competitors to contend with and will need to increase features and functionality to maintain its revenue and profit dominance.
What I don’t understand fully is how hundreds of Android smartphone makers manage to stay in business with little to no profits.