Research claims that while the entire market's smartphone profits declined by around a tenth in 2019, Apple continued to dominate with 66% of all profits and the nearest competitor being Samsung on just 17%.
Apple's share of the global smartphone market fell year-over-year in the June quarter from 11.3% to 10.1%, attributable by a research firm mostly because of better performance by Chinese vendors and Korea's Samsung.
Smartphone shipments in China are continuing to drop year-over-year. Not only is Apple holding on to estimated sales volume in the country, but the iPhone X and iPhone 8 Plus are both on the list of top five smartphones sold in the country.
It's not news that Apple is grabbing all the profits in the smartphone industry. But new data shows that Apple's most expensive new iPhone flagships are accomplishing this largely on their own, indicating that analyst chatter about smartphone users really wanting cheaper devices is totally delusional.
Ever since iPhones officially went on sale in China back in 2009, pundits have claimed that local production of cheaper smartphones would not only block Apple's growth prospects in China but also invade smartphone markets globally. They were wrong, here's why.
Last year, Samsung's exploding Galaxy Note 7 created a catastrophically distracting meltdown for the company that enabled Apple to surpass it in total unit sales of smartphones during the winter quarter. This year, Apple has again surpassed sales of all Samsung smartphones in the quarter, except this time it's by virtue of trend-bucking new demand for the innovative, revolutionary iPhone X—without much apparent regard for its price.
Apple's iPhone X — the first iPhone with a "TrueDepth" camera — may not be the only smartphone suffering from problems with 3D sensor production, as shipments for competing products are also reportedly being delayed.
Young smartphone buyers in China are preferring to buy low-priced domestic brands over phones from Samsung, but the loyalty rate in buying another Oppo or Vivo phone is half that of buyers getting another iPhone— which remains the largest installed smartphone base in China.
Low-end Chinese phones from companies that barely turn a profit and sell their cheaper products outside of urban centers are growing fast, but, Apple has an 80 percent lock on premium phone sales in China that isn't weakening. That's fueling Services and driving buyers into Apple Stores for other premium gear.
The launch of Samsung's 2017 flagship Galaxy S8 isn't causing any apparent concern among Apple's investors, who collectively pushed the company's stock even further upward today despite the announcements—and the continuous run up in Apple stock that has occurred since the iPhone maker last released earnings in January.
LeEco, the Chinese firm reported to be "taking on" Apple (as well as Tesla and Netflix) less than a year ago in an ambitious American expansion with new headquarters in San Jose, is now laying off employees and selling its property after running out of cash.
Apple's decline in Chinese iPhone shipments during 2016 can be blamed on the company refusing to adapt its tactics to the local market out of fear of risking its business elsewhere, according to Duan Yongping, the founder of Chinese smartphone brands Oppo and Vivo.
Apple's iPhone continued to grab the vast majority of smartphone profits globally, due to poor performance by Samsung and largely profitless production of massive numbers of lower end models by several companies in China.
Apple continued to struggle for ground in China during the December quarter, ceding fourth place in the country's smartphone market under pressure from local brands like Huawei and Xiaomi, according to new research data.
Several major Chinese smartphone vendors are forming a consortium with a supplier to invest in AMOLED production in 2017, mainly out of worries that Apple will end up monopolizing panel supplies with upcoming iPhones, according to reports.
Shares of Apple increased nearly 2 percent today to close at $98.79, close to the peak the stock has traded since diving below $100 after the company reported its fiscal Q2 earnings. Within two weeks, Apple will announce its earnings for Q3, which ended in June.