New record: iPhone dominates 85% of the smartphone market’s profit

New record: iPhone dominates 85% of the smartphone market’s profit

Apple’s most recent quarter marked the first time in a number of quarters that the company’s revenue and earnings decreased year over year. The smartphone sector is still where Apple makes the most money, and 2022 was a record year for the company. Apple accounted for 85% of all smartphone market earnings, according to Counterpoint.

iPhone is the world smartphone market leader

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First of all, it indicates that Apple generated more money than the whole market. Additionally, this is a record sum for the company. That’s not all, though. Apple also brought in 48% of the smartphone market’s total sales at the end of the previous year. Which is a record high for the brand. Even in terms of delivery, the Cupertino giant broke all previous records by capturing 18% of the market.

As you can see from the graphs, the proportion of shipments has not moved considerably since at least 2015, yet Apple’s profit and sales have increased dramatically in recent years relative to the market as a whole. In other words, the company’s iPhone’s average selling price is rising.

Around 1.2 billion smartphones were sold globally in total last year, a decrease of 12%. Additionally, this is the lowest number in a decade. To $409 billion, smartphone revenue decreased by 9%. It hasn’t been this low since 2017. The average selling price of a smartphone increased by 5% last year. According to the data, most likely because of Apple.

Regarding the premiumization trend: “premiumization can also be seen within the Android ecosystem and is being led by Samsung with its foldable smartphones. As a result, Samsung was the only top five OEM besides Apple to see a 1% growth in revenue, even though its shipments declined by 5% in 2022 and operating profit declined by 1%. The performance of its flagship smartphones was stronger than market projections. Nevertheless, with a smaller profit decline than the overall smartphone market, its operating profit share increased slightly to 12% in 2022” said Counterpointresearch Research Director Tarun Pathak.

 

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