Counterpoint: Apple earned 62% of the global phone profits in Q2

Apple recently hit the trillion dollar valuation (slightly behind schedule) and you may be wondering why. Counterpoint Research has two charts that will quickly explain it – Apple took in 62% of the global profits from phones during the second quarter of this year. That’s $6 billion in profits on $30 billion of revenue.

The Q2 profits of chief rival Samsung have been falling for the last three years and it took home 17% of the global profits, less than a third of what Apple made fro its phones. Meanwhile Chinese brands have been growing steadily with Huawei and Xiaomi getting a huge boost this year.

It’s easy for Apple to have good profit margins – nearly all of the phones costing $800 or more were sold by Cupertino. The $600-$800 segment is a fairly even split between Apple and Samsung (it’s 44% vs. 41%, the chart makes the difference seem much bigger). Samsung’s numbers declined recently as the Galaxy S9 underperformed.

It’s the $400-$600 segment where the Chinese brands show their strengths – after all, most of them sell their flagships at these prices. Here Oppo matches Apple, Huawei nearly matches Samsung and OnePlus and Huawei fight for the leftovers.

Source