As global handset earnings dipped 1 percent (year-on-year) in the fourth quarter of 2017, iPhone X alone generated 35 percent of the total handset industry gains, helping the iPhone manufacturer grow 1 percent (YoY) in the same quarter, a new report said on Tuesday.
According to the most recent research from Counterpoint’s Q4 2017, the smartphone market did not grow as expected while Apple stayed the most profitable brand, catching 86% of the total handset market gains.
“Apple climbed 1 percent (YoY) even with the iPhone X now being available for only two months in Q4 2017. The iPhone X generated 21 percent of total industry earnings and 35% of total industry profits during the quarter,” Research Analyst Karn Chauhan said in a statement.
“The talk of iPhone X is very likely to grow as it progresses farther into its life-cycle. Furthermore, the longer shelf life of all iPhones ensured that Apple still has eight out of top 10 smartphones, including its three-year-old models, generating the most gains compared to present competing smartphones from different OEMs,” Chauhan informed.
The global smartphone market has reached its summit with longer replacement cycles and key smartphone OEMs are now under pressure to book profits.
This has been driven by the greater combination of mid to high-end smartphones.
Essential Chinese players such as Huawei, Oppo and Vivo are currently looking to scale the cost band, by leveraging their in-house manufacturing capacities and bringing innovation to their devices, he added.
IPhone X generated 5 times more profits than the joint profits of over 600 Android OEMs during Q4 2017.
Apple and Samsung flagship models lead in regard to profits compared to other OEMs. Huawei was the leading brand among all the Chinese manufacturers, with profit raising 59 percent (YoY).
“With a heightened mix of flagship sales for key Chinese manufacturers, we expect profit share of Chinese players to increase in the coming quarters,” the report added.