Apple takes 75% of smartphone profits despite 13% market share, says report

“In Q2 2021, it captured 75% of the overall handset market operating profit and 40% of the revenue despite contributing a relatively moderate 13% to global handset shipments.”

What you need to know

  • A new report says that Apple captured 75% of smartphone profits and 40% of the revenue in Q2 of 2021.
  • That’s despite only contributing 13% of global shipments.
  • Counterpoint Research says the performance shows the power of Apple’s brand.

A new report claims that devices like the iPhone 12 and Apple’s other best iPhones helped it capture 75% of smartphone profits and 40% of revenue in Q2 2021, despite only account for 13% of total shipments.

From Counterpoint:

Apple has been the biggest profit and revenue generator in the handset business. In Q2 2021, it captured 75% of the overall handset market operating profit and 40% of the revenue despite contributing a relatively moderate 13% to global handset shipments. While this performance shows the power of the Apple brand, it is still lower than the peak of Q4 2020 when its revenue share reached a staggering 50%, up from 28% in Q3 2020, and its profit share reached an unprecedented 86%, up from 51% in the previous quarter.

That period saw a big jump in shipment share from 9% to 17%, which Counterpoint says is a testament to the popularity of 5G and the iPhone 12. The report notes how Apple also benefits from its famed interoperability between devices:

This is made possible by Apple’s significant control over both hardware and software, enabling a seamless shift of work on an app between multiple devices. While this has been the case for some time, it has become particularly pronounced with the stickiness of music, media, news, storage, etc. Apple is likely to retain this edge, enabling it to continue charging premium prices for its handsets, thus maintaining high operating profit margins.

Apple’s latest iPhone, the iPhone 13, seems to be proving just as popular as the previous generation, bringing incremental improvements over the 12 with a new processor, display, and camera upgrades across the lineup.

Apple doesn’t share sales or shipment figures for its iPhone, so the figures are based on Counterpoint’s own calculations, not official information from Apple.

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