At the latest conference, where Apple uncovered three new iPhones and the Apple Watch Series 4, we also learned the Cupertino-based manufacturer is more focusing on profit rather than on market share. Android-powered smartphones have leading positions in the market and they can boast of tens of millions of units sold quarterly. But Apple that is competing against this army alone has quite another philosophy. On September 13, it announced new iPhones, the price tags of which reached new heights. Say, the iPhone Xs Max 512GB costs $1449.00, while the cheapest iPhone XR 64GB costs $749. For Apple, the pursuit of higher profits is obviously more important than market share.
A few days ago, Counterpoint released the profit share of global smartphone brands in 2018. The data shows that global smartphone brands’ profit increased by 4% in the second quarter. The source believes that this is mainly due to the Chinese smartphone brands. Their total profit is more than $2 billion for the first time, accounting for nearly one-fifth of all smartphone brands’ profit.
Counterpoint also said that the flagships of the Chinese brands are very active and their prices are also high. Especially, the products such as the OPPO Find X, VIVO NEX, and the Huawei P20 Pro.
However, Apple is still the world’s most profitable smartphone brand, and iPhone X helped Apple achieve a significantly higher average phone price (ASP) in the second quarter. The data shows that Apple’s profit occupies 62% of the entire market in the Q2 2018. It is followed by Samsung (17%). China’s smartphone brands’ profits ranked in order of Huawei (8%), OPPO (5%), VIVO (4%), and Xiaomi (3%). It is worth mentioning that the remaining 1% of profits are divided by more than 600 phone brands.
In terms of profit growth, in the second quarter of 2018, Xiaomi (747%), Huawei (107%), VIVO (24%), and OPPO (23%) were the fastest growing smartphone brands.