Apple shipped 70 million iPhones in the fourth quarter of 2022, and the tech giant’s operational profit share of the global smartphone market hit a record high of 85%, miles ahead of competitors.
Apple shipped 70M iPhones in the fourth quarter of 2022
As reported by Counterpoint Research, Apple achieved its highest-ever global smartphone shipment, revenue, and operating profit share in 2022, propelled by sales of the iPhone 14 lineup.
Despite the fact that Apple’s shipments, revenue, and operational profits all decreased year over year in the fourth quarter of 2022, it held an 18% shipping share, 48% of the market’s revenue, and 85% of the segment’s profit.
In the fourth quarter, the tech giant shipped 70 million iPhones, up from 49.2 million in the third quarter but down from 81.5 million in the fourth quarter of 2021. The reason for the decreased shipping totals was not demand but problems with production in China.
Commenting on Apple’s performance, Research Director Jeff Fieldhack said, “having proficiently managed its production problems, Apple was able to weather a year already marred by economic and geopolitical turmoil better than other major smartphone players. Its iPhone Pro series continued performing well and its share of iPhone shipments could have been even higher if not for the production issues caused by the COVID-19 breakout at the Zhengzhou factory, which produces the vast majority of Pro series volumes. As a result, some Pro series volumes got pushed to January.”
In 2022, consumer spending remained low due to the Ukrainian conflict, inflationary pressures, economic uncertainty, and macroeconomic headwinds. The cost of living crisis, labor shortage, and a reduction in consumer spending power kept the smartphone market under pressure in the fourth quarter of 2022, causing double-digit declines in the shipments of each of the top five smartphone players.
Global shipments of smartphones decreased by 18% year over year in the fourth quarter of 2022, which was the lowest number for a holiday quarter since 2013. Shipments fell to 1.2 billion units for the entire year, which was also the lowest level since 2013.
The premium sector of the market, which was less impacted by economic and geopolitical risks, is where Apple’s whole product line is located. Many smartphone users have been opting to purchase higher-end devices since they are more reliable
Apple’s revenue fell from $123.9 billion in the first quarter of 2022 to $117.15 billion in the first quarter of 2023. The iPhone’s revenue for the quarter was $65.78 billion, down from $71.6 billion in the corresponding quarter last year.