Apple seems to have reaped most of the profits from the smartphone boom over the past ten years. This is despite the fact that the firm had its share of profits from the global market actually decline in Q2 2021- albeit to a healthy 75%.
This was made clear thanks to a new report from analyst firm Counterpoint Research. According to the report, Apple accounted for three-quarters of the smartphone industry’s profits in Q2 2021.
Although the industry’s total revenue of profits wasn’t mentioned, it is well known that sales did rise which would have contributed to higher money figures. Apple itself reported that in fiscal Q3 2021 iPhone sales rose by 50% year over year, to $39.6 billion.
The huge share of profits for Apple was linked with the “ecosystem” that connects Apple’s diverse lineup of devices.
“Apple also benefits from interoperability between its devices. The convenience with which one may shift between a Mac, iPad and an iPhone encourages users of one Apple device to stay within the Apple ecosystem by acquiring other of the brand’s devices,” Counterpoint notes.
“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.”
In spite of selling way more smartphones than Apple, Samsung still remained second when it came to profits. Huawei reported a decline in both shipments and profits mostly due to the ongoing U.S. sanctions for the past two years. This saw Huawei sink down the list below other Chinese brands like Xiaomi, OPPO and Vivo.
This report comes almost concurrently with others that now claim Apple may be forced to cut production to its iPhone 13 by up to 10 million units. This is due to chip shortages, an issue that also saw other brands get affected by last year.