A recent survey published by Counterpoint research about the smartphone market shows that even in adversity the Apple (not surprisingly) remain among the top manufacturers and the one that makes the most profit.
In this sense, although the global handset market dropped 11% in the third quarter of 2019 (compared to the previous year), Apple managed to capture 66% of sector profits, which corresponds to 32% of total revenue; Still, this is slightly below that reported in the same period of 2018.
According to the firm, Ma's loyal user base in key markets (such as the United States, Europe and Japan) is one of the reasons why the company continues to earn more than its rivals and is not expected to. That scenario will change in the near future, thanks to the new services (Apple Arcade, Apple TV +, etc.) of the company.
Now, with a strong service strategy, Apple's overall ecosystem is strong enough to ensure a steady stream of revenue for years to come. In the immediate future, we believe Apple's holiday season profits will increase, with the new line of iPhones gaining prominence.
In fact, Ma stands well ahead of its rivals when it comes to profitability. To give you an idea, Samsung (which sells far more handsets than Apple) retains only 17% industry profits, which already represents growth for the South Korean manufacturer, given the increased sales of the Galaxy A and Note10 devices.
As we said, the smartphone market is going through a not so positive phase. Given the 11% drop in revenue, sales amounted to $ 12 billion in the last quarter; According to Counterpoint, this decline is due to the fact that devices flagships they are facing increased competition from intermediate models in major markets around the world.
However, this retrograde phase should soon be over. For the firm, the adoption of 5G in the coming quarters will boost users 'device upgrades leading to manufacturers' revenue growth, which is already preparing for the full transition.
Although the expectation is positive for the coming months, companies should not see an increase in profits, as the cost of smartphone production should also rise.
via Patently Apple