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Apple’s Smartphone Revenue and Operating Profit Hit June-Quarter Records in Q2 2023

  • Apple led global smartphone revenues and operating profit with record June-quarter shares of 45% and 85% respectively.
  • Global smartphone revenues declined by 8% YoY and 15% QoQ to well under $90 billion in Q2 2023.
  • In the same period, global smartphone operating profit fell to below $13 billion, declining by 3% YoY and 27% QoQ.
  • Apple was the single-largest contributor to profitability, with an 85% share, up from 84% last quarter and 81% in the same quarter last year.

London, New Delhi, Hong Kong, Seoul, Beijing, Denver, Buenos Aires – Aug 4, 2023

Global smartphone market revenues declined by 8% YoY and 15% QoQ to significantly under $90 billion in Q2 2023, the lowest Q2 figure since 2020 during the height of the global pandemic-related lockdowns. The corresponding operating profit declines were 3% and 27% according to research from Counterpoint’s Market Monitor Service.

Commenting on Apple’s performance, Research Director Jeff Fieldhack noted, “Apple’s shipments declined by 3% YoY while the smartphone market declined by 9% in the same period. At the same time, its ASP increased thanks to a growing contribution of the Pro series, declining contribution of the SE series and the replacement of the Mini in iPhone 13 with a Plus in iPhone 14. As a result, while Apple’s iPhone revenue declined by 2% annually, its revenue share grew, reaching a second-quarter record of 45%. This is up by almost 3% since the same quarter of last year. Its share of global operating profits also grew by 4% since Q2 2022, reaching 85%, another second quarter record for Apple.”

Apple Smartphone Revenues and Operating Profit Q2 2023

The revenue decline in the overall market was caused by a shipment decline of 9% YoY combined with an ASP growth of only 1% in the same period.

Commenting on overall market dynamics, Research Director Tarun Pathak said, “The low ASP growth is mainly due to seasonality as, for instance, the second quarter is equidistant from peak iPhone demand and new iPhone launch, and sees neither of Samsung’s ultra-premium S or Z-series launches. The annual revenue decline also translated into operating profit losses for the overall market. The sequential operating profit decline suffered additionally from a changing shipment-mix, especially as the shipment share of Apple, the single-biggest contributor to total operating profit, went down by almost 4% QoQ.”

Despite ASP growth stagnating in the quarter, the premiumisation trend is likely to continue as emerging markets drive the next chapter of its growth and mid-tier brands target the premium segment and premium brands aim to sell more of their highest-priced models. Consequently, both global smartphone revenues and operating profits will see a recovery starting in H2 2023. This will support the smartphone market in the period when it struggles with lower shipments.

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

You can also visit our Data Section (updated quarterly) to view the smartphone market share for WorldUSChina and India.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts:

Harmeet Singh Walia

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Jeff Fieldhack

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