iPhone is responsible for a whopping three quarters of all profits earned in the global smartphone market, according to a new report. That’s despite Apple seeing fewer sales than Samsung and Xiaomi.
Cupertino’s handset business actually accounted for just 13% of all smartphone shipments during the second quarter of 2021. But thanks to the large profit margins it enjoys on almost all of its products, it is by far the biggest earner.
iPhone still brings in more cash than any other phone
Apple has never been the world’s biggest smartphone-maker. It was number two for a rather lengthy period, but that title was stolen by copycat Xiaomi earlier this year. However, Apple is top where it matters most — in profits and revenue.
Last quarter, iPhone contributed 40% of global smartphone revenue — more than twice as much as Samsung, which took second place. It also raked in 75% of all profits, more than every other smartphone vendor combined.
These figures, despite being incredibly promising for Apple, aren’t quite as spectacular as those Apple enjoyed during iPhone’s peak in the final quarter of 2020, when it accounted for 50% of global smartphone revenue.
5G a big success for iPhone
iPhone has seen an increase in shipments, however, and Counterpoint attributes this to the success to Apple’s first 5G-enabled devices, which first landed last fall as the iPhone 12 series, and interoperability between its different products.
“The convenience with which one may shift between a Mac, iPad and an iPhone encourages users of one Apple device to stay within the Apple ecosystem by acquiring other of the brand’s devices,” the report reads.
Counterpoint expects Apple to “retain this edge,” which would enable it to keep its higher price tags and profit margins for the foreseeable future.