Counterpoint’s new market research reveals that Apple dominated the global handset market operating profit by capturing a 75% share in Q2, 2021. Despite low shipments than Android handsets, the iPhone maker generated the biggest profit and revenue because of the success of its first 5G iPhones and interoperability between its devices.
With a 75% share of handset market operating profit, Apple generated 40% revenue with only contributing 13% of shipments in Q2 2021
Cupertino tech giant’s success in the handset business is accredited to 5G enabled iPhones and its ecosystem. That’s why with contributing only 13% to the global handset shipments, the company was able to earn 40% revenue and 75% of the overall handset market operating profit in Q2, 2021
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. While there was a significant jump in its shipment share, from 9% to 17% in the same period, the extent of its revenue share reflects the success of its first 5G-enabled iPhone series.
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. 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.
Furthermore, the report explains that Apple is likely to maintain its position because of consumers’ preference for its ecosystem with music, media, news, storage, and more which will allow the company to charge premium prices for its handsets.
Samsung takes the second spot and Xiaomi takes third place in the global handset market operating profits mainly because of trade sanctions on Huawei and lower average selling price (ASP).