Report: Apple earned 32 percent of all revenue in the smartphone industry
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Apple has been a pioneer in the smartphone industry since its inception. 2019 has been a bearish year for smartphones in general, with demand for premium devices slowing down worldwide. iPhones don't seem to be feeling the heat, though. The industry overall reported an 11% decline in profits during Q3 2019. However, Apple alone secured 66% of smartphone profits and 32% of smartphone revenue, according to a report by Counterpoint Research.
With an extremely loyal consumer base in the USA, EU, Japan, and China, Apple continues to post solid financials even as other manufacturers struggle. Another reason behind Apple's exceptional performance is the introduction of new products within the Apple ecosystem, such as the Apple Card.
Samsung, Cupertino's main competitor, is a far-distant second with only 17% of industry's profits. Brands such as Xiaomi and Huawei with a substantial amount of mindshare barely figure in global smartphone profit figures. A key reason behind this is that these brands sell high-end hardware at lower prices, reducing their margins.
With iPhones commanding a high mindshare, large userbase, and high resale value, Apple is able to sell hardware at premium prices even if it lags behind the competition on key specs like camera quality, battery life, and display resolution. Apple, of course, reaps the dividends.