It has been found that the profit Apple makes by selling one smartphone is about five times the profit Samsung makes by selling one smartphone and this has resulted in Apple accounting for close to 60% of the total operating profits of the global smartphone market.
According to market research firm Counterpoint Research, Apple made a profit of US$151 per smartphone in the market in the third quarter of this year whereas the profit per unit of Samsung Electronics was US$31 and those of Huawei, Oppo, Vivo and Xiaomi were US$15, US$14, US$13 and US$2, respectively. As a result, Apple represented 59.8% of the total operating profits of the global smartphone market during the period although the ratio fell from 85.9% from a year earlier.
The ratio of Samsung Electronics rose from 0% to 25.9% during the same period. In the third quarter of 2016, the production of the Samsung Galaxy Note 7 was stopped to result in the zero percent profit share. Huawei’s operating profit share rose from 3.3% to 4.9%. On the contrary, those of Oppo and Vivo fell from 4.2% to 4.0% and from 3.7% to 3.1%, respectively.
“In the third quarter of this year, Chinese smartphone manufacturers’ combined operating profits exceeded US$1.5 billion for the first time ever,” the market research firm explained, adding, “This means a significant change in the market in that Samsung Electronics and Apple had accounted for most of the profits until the previous quarter.”