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Apple Widens the Smartphone Revenue Gap with Samsung and takes a Whopping 75.6% of North American Revenues

1 X2 Apple widens profit gap with Samsung


Last week Patently Apple posted a report titled "The Success of Apple's Holiday Quarter Continues with the iPhone Capturing 51% of Global Smartphone Revenue Share." The data was from Strategy Analytics. Today a new report from a second analytical company goes one step further and shows us the revenue breakdown across various markets that's even more impressive. One chart, as noted in-part above, shows us that the revenue gap between Apple and Samsung is getting much wider.


Today Counterpoint has published a report noting that "The volume super-cycle looks to be difficult this year through iPhone X or 8 series, but what we could witness here is Apple entering into 'Revenue Super-Cycle' for iPhones.


Already at the end of Q4 2017, Apple generated massive revenues, commanding significantly higher Average Selling Price (ASP) for its new iPhones and registering record smartphone hardware revenue share across regions." Various points made in the report are as follows:


2 X - Counterpoint chart  apple profit share per market. Q4 2017

  • Apple now controls almost 50% or half of the global smartphone revenues competing in a market with more than 500 regularly active brands.


  • The gap between Apple vs Samsung and others is getting wider like it has been in for profits (see here) earlier before the Chinese vendor ramped up with scale


3 XXX apple samsung chart

  • Apple also now controls almost 76% or three-fourths of the smartphone revenues in North America market and almost 57% in Europe with more than two-thirds in many Western European individual markets


  • The major reason has been, consumers willingness to pay higher and higher price for the iPhones every year as most of them see smartphones as the crux for their digital lives


  • Secondly, Apple's brand, user-experience and design stickiness still remains the key motivators for consumers and preferably for 700 million strong global iPhone users to upgrade and willingly open up their wallets to Apple incrementally paying higher ASP every year if not that much from Android switchers


  • Further, Apple's clever anchor pricing strategy for higher memory capacity SKUs (e.g. 256GB versions) choice of OLED display in just the top SKU (e.g. iPhone X) have also played a key role in boosting Apple's revenues and even making some of its suppliers richer (see here)


  • And lastly, Counterpoint's Research Director Neil Shah says that "Even at the estimated almost flat annual volume share in 2018, Apple is well-positioned this year to generate a "Revenue Super Cycle" taking iPhone generated revenues to record levels."


4 counterpoint

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