Apple iPhone X Accounts For 35% Profit Made By Smartphones in 2017
2017 was a great year for smartphone enthusiasts. We saw thin bezels and tall displays become a norm and new smartphone designs like the iPhone X with a notch. However, that innovation in smartphones did not translate into desired sales as global mobile profits decreased by 1% year-on-year in Q4 of 2017. For Apple, though, it was not a gloomy year by any means. The Apple iPhone X alone generated 35% of the total mobile industry profit as Apple grew by 1% year-on-year in Q4 of 2017.
According to the latest report by Counterpoint Research, Apple remained the most profitable premium smartphone brand, capturing about 86% of the total handset market profits.
Apple grew 1 percent (YoY) even with the iPhone X being available for only two months in Q4 2017. The iPhone X alone generated 21 percent of total industry revenue and 35 percent of total industry profits during the quarter.
The share of iPhone X is likely to grow as it advances further into its life-cycle. Additionally, the longer shelf life of all iPhones ensured that Apple still has eight out of top 10 smartphones, including its three-year-old models, generating the most profits compared to current competing smartphones from other OEMs
Interestingly, the iPhone X generated 5 times more profit than the combined profits of over 600 Android smartphone makers during the fourth quarter of 2017. Thanks to a host of budget smartphones on offer by Chinese OEMs, their cumulative profits crossed US$ 1.3 billion during Q4 2017. Interestingly, the average selling price of their smartphones increased year-on-year.
These figures tell a curious tale about the iPhone X, which was heavily criticised for its price and design at the time of its launch. However, with time, the design of the iPhone X has set an industry wide trend and the price tag has not stopped it from being the most successful smartphone of 2017. Sales of the iPhone X are expected to increase further when the next generation of iPhones is launched later in 2018. The price of the iPhone X will go down and potential iPhone buyers will go for the iPhone X as the design of 2018 iPhones is expected to be similar to the iPhone X.