iPhone X grabs 35% of industry profits in Q4 2017

[DrMacintosh]

Quote

As global handset profits dipped 1% (year-on-year) in the fourth quarter of 2017, Apple X alone generated 35% of the total handset industry profits, helping the iPhone maker grow 1% (YoY) in the same quarter, a new report said.

Just one device did this.....just one......and it underperformed according to Apples' expectations! 

Quote

"Apple grew 1% (YoY) even with the iPhone X being available for only two months in Q4 2017. The iPhone X alone generated 21% of total industry revenue and 35% of total industry profits during the quarter," Research Analyst Karn Chauhan said in a statement.

Those margins though

Quote

"The share of iPhone X is likely to grow as it advances further into its life-cycle. Additionally, 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 profits compared to current competing smartphones from other OEMs," Chauhan informed.

 

The global smartphone market has already reached its peak with longer replacement cycles and key smartphone OEMs are now under pressure to book profits.

Insane brand + high profit margins + plus long support cycles = profit (contrary to the planned obsolescence theory towards Apple and their business model)

Quote

iPhone X generated 5 times more profits than the combined profits of over 600 Android OEMs during Q4 2017.

Damn! 

 

That bit about the market having hit its peak really stands out to me, especially with the recent trend in smartphones after the release of the iPhone X. Smartphone makers are pretty much out of ideas and most everything is becoming an iterative update. Many would draw parallels to the iPhone 6-8 and I would draw parallels to the Galaxy S6-8. 

 

Apple however manages to get almost all the money in the industry and the best these other OEMs can seem to do is try and copy Apple's hardware designs without doing any of the things Apple does right in their hardware or software in spite of Apples' serious flaws as a company in some respects like service and repairability*

 

Quote

"With an increased mix of flagship sales for key Chinese brands, we expect profit share of Chinese players to grow in the coming quarters," the report added.

This last bit of the report may be an issue, and Apple has historically been unable to penetrate the Chinese market do to the profound cultural and legal differences preventing Apple from going after Chinese based companies that just essentially copy paste the look of an iPhone and get away with it. The caveat is that it has always been rumored that someone is going to do something to at least try to unseat Apple but it has never happened. 

 

Until an Android OEM can deliver a hardware and software experience, along with customer support, longer device support windows, and establish a strong brand, it is unlikely that these figures will change in favor of everyone else in my opinion. 

 

Source: https://www.cnbctv18.com/telecom/iphone-x-pocketed-35-of-total-handset-industry-profits-in-q4-2017-37151.htm 

 

*see iPhone 8 display bricking, iMac Pro repair, soldered components, etc. 

[mr moose]

Access denied, you do not have permission to access ***  on this server.

 

 

 

[Zodiark1593]

Given the A11 Bionic's processing prowess, I have wonder how effective a hidden cryptominer would be? All those poor, bored, grossly disgustingly overpowered phones need something to do.

[DrMacintosh]

Just now, Zodiark1593 said:

Given the A11 Bionic's processing prowess, I have wonder how effective a hidden cryptominer would be?

Probably not very effective once the thing shuts down from all the thermal output  

[Sniperfox47]

This is just sad... But I guess it's to be expected...

[vanished]

[DrMacintosh]

3 minutes ago, Sniperfox47 said:

This is just sad... But I guess it's to be expected...

Whatever the reason for the success, Apple certainly loves all the cash its getting  

[RyomaSJibenG]

[vanished]

But really though, I guess they should be commended?  I mean, when Linus last talked about this on WAN a while back, the numbers were something insane like 80% of the total profit was Apple's, 30% was Samsung, and they don't add to 100 because the rest of companies were actually operating at a loss, which just baffles me considering the prices they charge and the lacklustre support.  What are they spending it on?

[DoctorWho1975]

So I'm guessing in about 3 years crApple's top device is going to 1500? Because people keep buying the damned things no matter what (not like there is no competition for high end smartphones) they are only going to keep raising the price.

[mr moose]

37 minutes ago, Ryan_Vickers said:

But really though, I guess they should be commended?  I mean, when Linus last talked about this on WAN a while back, the numbers were something insane like 80% of the total profit was Apple's, 30% was Samsung, and they don't add to 100 because the rest of companies were actually operating at a loss, which just baffles me considering the prices they charge and the lacklustre support.  What are they spending it on?

depends how you spin the figures, what you are quoting and where you get your numbers from.  Every source tells a different story and profit doesn't actually mean much when you consider there are hundreds of sub $100 android phones on the market and only 3 apple options all top tier.  Even Samsung sells many cheap versions which would make their total profits look small compared to total phone sales.   People also tend to forget that there is a huge difference between a US only market and the rest of the world.

[vanished]

Just now, mr moose said:

depends how you spin the figures, what you are quoting and where you get your numbers from.  Every source tells a different story and profit doesn't actually mean much when you consider there are hundreds of sub $100 android phones on the market and only 3 apple options all top tier.  Even Samsung sells many cheap versions which would make their total profits look small compared to total phone sales.   People also tend to forget that there is a huge difference between a US only market and the rest of the world.

Hm, I suppose that's true.  I should try to find that original article, hopefully it has some of those details.

[mr moose]

1 minute ago, Ryan_Vickers said:

Hm, I suppose that's true.  I should try to find that original article, hopefully it has some of those details.

I keep getting this error:

 

You don't have permission to access "http://www.cnbctv18.com/telecom/iphone-x-pocketed-35-of-total-handset-industry-profits-in-q4-2017-37151.htm" on this server.

 

[79wjd]

1 minute ago, mr moose said:

I keep gettin gthis error:

 

You don't have permission to access "http://www.cnbctv18.com/telecom/iphone-x-pocketed-35-of-total-handset-industry-profits-in-q4-2017-37151.htm" on this server.

 

 

Spoiler

Quote

As global handset profits dipped 1% (year-on-year) in the fourth quarter of 2017, Apple X alone generated 35% of the total handset industry profits, helping the iPhone maker grow 1% (YoY) in the same quarter, a new report said.

According to the latest research from Counterpoint's Q4 2017, the premium smartphone market did not grow as expected while Apple remained the most profitable brand, capturing 86% of the total handset market profits.

"Apple grew 1% (YoY) even with the iPhone X being available for only two months in Q4 2017. The iPhone X alone generated 21% of total industry revenue and 35% of total industry profits during the quarter," Research Analyst Karn Chauhan said in a statement.

"The share of iPhone X is likely to grow as it advances further into its life-cycle. Additionally, 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 profits compared to current competing smartphones from other OEMs," Chauhan informed.

The global smartphone market has already reached its peak with longer replacement cycles and key smartphone OEMs are now under pressure to book profits.

"Chinese OEMs cumulative profits crossed $1.3 billion during Q4 2017. This was driven by the increased mix of mid to high-end smartphones. In fact, the average selling price (ASP) of their flagship devices also increased YoY," added Associate Director Tarun Pathak.

Key Chinese players like Huawei, OPPO and Vivo are now looking to scale up the price band, by leveraging their inhouse manufacturing capabilities and bringing innovation to their devices, he added.

iPhone X generated 5 times more profits than the combined profits of over 600 Android OEMs during Q4 2017.

Apple and Samsung flagship models lead in terms of profits as compared to other OEMs. Huawei was the leading brand among all the Chinese brands, with profit increasing 59% (YoY).

"With an increased mix of flagship sales for key Chinese brands, we expect profit share of Chinese players to grow in the coming quarters," the report added.

 

 

[DrMacintosh]

1 minute ago, mr moose said:

I keep getting this error:

 

You don't have permission to access "http://www.cnbctv18.com/telecom/iphone-x-pocketed-35-of-total-handset-industry-profits-in-q4-2017-37151.htm" on this server.

 

could be a region/ISP lock. Link works for me. 

[vanished]

Just now, mr moose said:

I keep getting this error:

 

You don't have permission to access "http://www.cnbctv18.com/telecom/iphone-x-pocketed-35-of-total-handset-industry-profits-in-q4-2017-37151.htm" on this server.

 

That's not what I was talking about but that link works for me.  Here's a capture:

Spoiler

 

[vanished]

https://www.wsj.com/articles/apples-share-of-smartphone-industrys-profits-soars-to-92-1436727458

I don't think this was the one I was thinking of but the numbers are in the ballpark, and it claims they are "global sales", if that helps.

[mr moose]

2 minutes ago, Ryan_Vickers said:

https://www.wsj.com/articles/apples-share-of-smartphone-industrys-profits-soars-to-92-1436727458

I don't think this was the one I was thinking of but the numbers are in the ballpark, and it claims they are "global sales", if that helps.

I didn't mean this article wasn't referring to global figures, I just meant that in all the discussions that go on on this topic, the difference between the US market and the global market often gets confused as some article talk only about US sales while the discussion varies between regional and global. 

 

I'm not sure how I actually feel about a company that makes that much profit from the same number of sales* as their nearest rival.

 

*rudimentary speaking.

[Bcat00]

I'll just point this out before anyone else does, that 35% profit is mostly made up of Chinese consumers. They don't treat phones as a device, they treat it as a status symbol like girls treat their Gucci bags.

And before anyone says there's Samsung phones too, sorry, but that name doesn't even stand close to Apple's status symbol in China. 

[DrMacintosh]

4 minutes ago, Bcat00 said:

I'll just point this out before anyone else does, that 35% profit is mostly made up of Chinese consumers. They don't treat phones as a device, they treat it as a status symbol like girls treat their Gucci bags.

And before anyone says there's Samsung phones too, sorry, but that name doesn't even stand close to Apple's status symbol in China. 

Where are your numbers on that?

 

There are a lot of iPhone Xs in my HS alone. Apple has a pretty weak Chinese market btw.

[captain_to_fire]

1 hour ago, Zodiark1593 said:

Given the A11 Bionic's processing prowess, I have wonder how effective a hidden cryptominer would be? All those poor, bored, grossly disgustingly overpowered phones need something to do.

Apple pushes a software update that will not only ban all forms of cryptomining but also bricks the iPhone once jailbroken for the sole purpose of cryptomining 

[Cookybiscuit]

$4000 phone when?

[2FA]

Just now, Cookybiscuit said:

$4000 phone when?

Stop, you'll give someone ideas.

[Cookybiscuit]

Just now, 2FA said:

Stop, you'll give someone ideas.

Next thing you know they'll be taking away the 3.5mm audio jack.

[DrMacintosh]

4 minutes ago, Cookybiscuit said:

$4000 phone when?

When the market accepts that price as being worth it lol.