Top

iPhone X Alone Generated 35% of the Total Handset Industry Profits in Q4 2017

New Delhi, Mumbai, Hong Kong, Seoul, London, Buenos Aires – April 17, 2018

According to the latest research from Counterpoint’s Q4 2017, Global handset profits declined 1% YoY in Q4 2017 (October-December) as the premium smartphone market did not grow as expected. We believe that the Global smartphone market has already reached its peak with longer replacement cycles and key smartphone OEMs are now under pressure to book profits.

Counterpoint Research Analyst, Karn Chauhan, highlighted, “Global handset profits declined 1% YoY, but Apple grew 1% YoY even with the iPhone X being available for only two months in Q4 2017. The iPhone X alone generated 21% of total industry revenue and 35% of total industry profits during the quarter and its share 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 ten smartphones, including its three-year-old models, generating the most profits compared to current competing smartphones from other OEMs.”

Commenting on the performance of Chinese brands, Associate Director, Tarun Pathak, highlighted, “Chinese OEMs cumulative profits crossed 1.3 USD billion during Q4 2017. This was driven by the increased mix of mid to high end smartphones.In fact, the average selling price (ASP) of their flagship devices also increased YoY. Key Chinese players like Huawei, OPPO and Vivo are now looking to scale up the price band, by leveraging their in-house manufacturing capabilities and bringing innovation to their devices.”

Handset profit Share by Top 10 Models Q4 2017

Market Summary – Q4 2017:

  • Apple remained the most profitable brand, capturing 86% of the total handset market profits
  • Further splitting profits by model, the top 10 models captured 90% of the total handset profits.
  • Apple and Samsung flagship models, lead in terms of profits as compared to other OEMs.
  • iPhone X alone generated 35% of the total handset industry profits. This is a significant landmark, as the model was available in the market for only two months during Q4 2017.

    iPhone X generated 5X more profit than the combined profit of 600+ Android OEMs during Q4 2017.

  • Apple’s older generation iPhones, iPhone 7 and iPhone 6 still generate more profit than some of the more recent Android flagships from key Chinese OEMs.
  • Huawei was the leading brand among all the Chinese brands, with profit increasing 59% YoY.
  • With an increased mix of flagship sales for key Chinese brands, we expect profit share of Chinese players to grow in the coming quarters.

The comprehensive and in-depth Q4 2017 handset profit share analysis is available for subscribing clients. The methodology involves insights from supply chain interviews and our Bill of Materials (BOM) tracker. Feel free to reach out to us at press(at)counterpointresearch.com for further questions regarding our in-depth latest research, insights or press enquiries

Counterpoint research is a young and fast growing research firm covering analysis of the tech industry. Coverage areas are connected devices, digital consumer goods, software & applications and other adjacent topics. We provide syndicated research reports as well as tailored. Our seminars and workshops for companies and institutions are popular and available on demand. Consulting and customized work on the above topics is provided for high precision projects.

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited

Registration

In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.