Apple still makes the most amount of money through its iPhones than what all the other tech majors generate through their smartphones. A new report suggests that the Cupertino tech major captured 40 per cent of the overall revenue of the handset market in Q2, 2021, capturing a whopping 75 per cent operating profit of the industry in the process.
The staggering numbers are nowhere near to the total shipments of iPhones vis-a-vis other smartphones. iPhones contributed to just about 13 per cent of global handset shipments. Yet, they managed to generate the sky-high revenue and profits for Apple that no other company seems anywhere near to, for now.
The numbers, shared in a recent Counterpoint Research report, show a whole different story than what has been indicated by the shipment numbers for this year. From a shipment point of view, Xiaomi ranked as the second-highest selling smartphone brand globally in Q2 2021. It trumped Apple to the spot, sitting next to Samsung which grabbed around 19 per cent of global smartphone shipments.
Though none of these companies was able to generate as much revenue and operating profit from their devices as Apple. This is due to the brand value that Apple brings with its iPhones which are usually priced high. More and more people are adopting iPhones as their new smartphones, not minding the high price points at which they retail.
This is thanks to Apple’s advancements in both the hardware and the software front. The company has launched the iPhone 13 series with several improvements over the previous iPhone 12 models. For instance, it has equipped them with A15 Bionic chip, an improved processor than the one seen on the earlier generation. The cameras are better, the batteries are better and the displays have been improved too. You can check out our iPhone 13 reviews here –
Review: iPhone 13, iPhone 13 mini, iPhone 13 Pro, iPhone 13 Pro Max
Alongside, Apple has introduced the iOS 15 for iPhones, which has been custom-made to bring new functionalities with the new iPhones. Apple thus clearly has control over the entire ecosystem of its phones (and other devices). In contrast, other OEMs rely on Google’s Android integration for optimum performance on their devices.
Therefore, there is no surprise that Apple is able to monetise its stronghold in this area. Other OEMs, mostly those from China like Xiaomi and Oppo, are now trying to increase their profits too. As they target more high-end models and new categories like foldable smartphones, the profit margins for the companies are sure to improve in the time to come.
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