At the same time, Apple accounts for only a third of revenue.
The total global profit from cell phone sales in the third quarter of 2019 decreased in annual terms by 11% and amounted to $ 12 billion. This was due to the expansion of the range of mid-range models and led to a drop in the income of major smartphone manufacturers. In the top ten brands, only Samsung and Huawei were able to increase their revenue. In addition, the replacement cycle for premium smartphones has lengthened, as recent hardware innovations have failed to become a sufficient reason for the upgrade. This conclusion is contained in the report of the analytical company Counterpoint.
Apple dominates this market, capturing 32% of total revenue and 66% of profits. The constant base of premium users in major markets such as the US, EU and Japan is one of the reasons that Apple continues to maintain a level of profit that competitors can only dream of. According to Counterpoint experts, Apple’s “common ecosystem” is strong enough to guarantee the company a steady revenue stream in the coming years.
Samsung ranks second, earning 17% of all industry profits. Samsung’s above-mentioned revenue growth is driven by the expansion of the Galaxy A line and the success of the Galaxy Note 10 series.
Chinese smartphone makers are operating at low profits, but more than in previous years. They offer good performance models at affordable prices.
In the coming quarters, improvement is expected due to the introduction of 5G.