When the tech giant Apple released its financial results, we noticed that it sold fewer smartphones in the fourth quarter, but made a record profit, especially due to the iPhone X, of course, the flagship smartphone of the tech giant Apple.
Apple Once More Dominates Global Smartphone Profits
When the tech giant Apple released its financial results, we noticed that it sold fewer smartphones in the fourth quarter, but made a record profit – especially due to the iPhone X.
In fact, according to Counterpoint Research, the tech giant Apple dominated 86% of the mobile phone market profit in the fourth quarter. Only the iPhone X accounts for 35% of the total.
It may seem easy to make a big profit from a smartphone that costs from $999 in the US and Rs. 66,000 in India. However, it could have stalled due to the high price, the absence of Touch ID, and design with the notch.
“The iPhone X has surpassed our expectations and has been our best selling iPhone every week since it hit the market in November,” Tim Cook said in February.
Among the 10 smartphones that generated more profit, 8 are from the tech giant Apple; the others are Galaxy Note 8 and Galaxy S8 Plus, from the South Korean giant Samsung. They account for 90% of total profits in this market.
The other 10% is divided among a number of manufacturers, including LG, Motorola, Asus and Sony, as well as Chinese companies like Xiaomi, Huawei, Oppo and Vivo – which are some of the largest smartphone manufacturers in the world.
If a company goes for years without making a profit, one hour it gives up the market. HTC, for example, has sold part of its smartphone division to the tech giant Google and can launch its latest flagship this year.
LG comes bothering losses in the mobile division and wants to change that with a new flagship – the G7 thinq – and faster updates for Android. Motorola has put all its effort hard worldwide to achieve more relevance in the global market.
But, according to Counterpoint Research, “the global smartphone market has peaked; replacement cycles are longer, and major manufacturers are now under pressure to make a profit.”
What to do? Sell more premium smartphones, which justify a higher price. Summed up, Chinese manufacturers made a profit of $1.3 billion in the fourth quarter, boosted by mid-range and high-end handsets. Huawei, Oppo and Vivo “are now seeking to increase the price range.”
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