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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.”

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 World, US, China 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

Tarun Pathak

Jeff Fieldhack

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Global Smartphone Market Declines 14% YoY in Q1 2023; Apple Records Highest-Ever Q1 Share

The global smartphone market declined by 14% YoY and 7% QoQ to record 280.2 million unit shipments in Q1 2023.
Samsung replaced Apple as the top smartphone player in Q1 2023, driven by its mid-tier A Series and the recently launched S23 series.
Apple’s YoY shipment decline was the least among the top five brands. Consequently, it recorded its highest-ever Q1 share of 21%.
Global smartphone revenues declined by 7% YoY to around $104 billion. Apple, Samsung, Xiaomi increased their Average Selling Prices YoY.

London, New Delhi, Hong Kong, Seoul, Beijing, Denver, Buenos Aires – May 5, 2023

The global smartphone market faced further contraction in the post-holiday-season quarter with shipments declining by 14% YoY and 7% QoQ to 280.2 million units in Q1 2023, according to the latest research from Counterpoint’s Market Monitor service.

Source: Counterpoint Research Market Monitor Preliminary Data, Q1 2023
Note: OPPO Includes OnePlus

Commenting on overall market dynamics, Senior Analyst Harmeet Singh Walia said, “Smartphone shipments declined further in Q1 2023 following the weakest holiday-season quarter since 2013, as the slower-than-expected recovery in China was marred by alarming bank failures on both sides of the Atlantic further weakening consumer confidence in the face of unrelenting market volatility. The smartphone market was also hit by some major brands supplying fewer new devices to a market struggling with high inventories at a time when consumers are choosing to renew less often, but with more durable smartphones when they do buy.”

Consequently, global smartphone revenue and operating profit also declined, although not as much as shipments. This was due, in part, to the lower-than-usual decline in Apple’s shipments, to 58 million units in Q1 2023. Apple thereby managed to capture nearly half of all smartphone revenues. While Samsung’s shipments declined 19% YoY despite growing by 4% QoQ to 60.6 million units, the launch of the Galaxy S23 series enabled Samsung’s ASP to increase to $340, up 17% YoY and 35% QoQ, which in turn contributed to global revenues falling relatively less. Apple and Samsung also remain the most profitable brands, together capturing 96% of global smartphone operating profits.

Source: Counterpoint Research Market Monitor Preliminary Data, Q1 2023
Note: OPPO Includes OnePlus

Commenting on Apple’s performance, Research Director Jeff Fieldhack said, “Apple outperformed the market due to several factors. Firstly, the stickiness of its ecosystem prevents its customers from choosing a cheaper smartphone even in times of economic difficulty. Secondly, with sustainability becoming a priority for many, not only has Apple captured nearly half of the secondary market, it is also attracting users who are willing to spend more for longer-lasting devices. Thirdly, it is the preferred brand for Gen Z consumers in the West and is thereby positioning itself for sustained success. At the same time, it has been filling the void left by Huawei in China’s premium market. So, Apple is able to weather economic and other fluctuations better than its rivals while enjoying unflinching loyalty. This also meant Apple was able to meet the demand for the iPhone 14 series which spilt over Q4 2022, when it had problems at its Zhengzhou factory, rather than that share dissipating or transferring to rivals.”

Besides Samsung and Apple, the biggest global smartphone brands from China, Xiaomi, OPPO* and vivo, will have to wait longer for their shipments to rebound as each of them experienced double-digit annual declines in Q1 2023. This was due to a seasonal slowdown in China at a time when the country’s economic recovery is taking longer than expected. OPPO* has recently been facing challenges in overseas markets too. It has had to exit the German market after losing a patent lawsuit with Nokia. At the same time, the three brands’ revenues and profitability have struggled too. While OPPO* and vivo saw both annual shipment and ASP declines, leading to double-digit revenue declines, Xiaomi’s slight annual ASP growth could also not prevent a double-digit revenue decline in Q1 2023.

The smartphone market as a whole, too, is likely to struggle for the next couple of quarters. Commenting on the near-term outlook, Research Director Tarun Pathak said, “The persistent issues affecting the smartphone market are unlikely to abate anytime soon. Moreover, the recent decision by OPEC countries to cut oil production may lead to higher inflation rates, causing a reduction in consumers’ spending power. As a result, even if the decline in smartphone shipments stabilises, a significant recovery is unlikely before the year-end holiday quarter.”

*OPPO includes OnePlus

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

Background

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

Analyst Contacts

Harmeet Singh Walia

Tarun Pathak

Prachir Singh

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One in Three iPhones Sold in China in 2022 Was iPhone 13

Apple’s iPhone 13 was the best-selling smartphone in China in 2022.
HONOR’s X30 was the best-selling Android smartphone with a 1.8% market share.
Nine smartphones in the top-10 bestseller list were 5G enabled.
HONOR’s Play 20 was the most affordable smartphone on the list.
The sales share of the top 10 models is expected to decrease in 2023.

Beijing, New Delhi, London, San Diego, Buenos Aires, Seoul, Hong Kong – March 27, 2023

In 2022, Apple’s iPhone 13 contributed to 37% of the brand’s smartphone sales in China, according to Counterpoint Research’s Global Monthly Handset Model Sales Tracker. Apple captured the top three spots in the list of China’s top 10 best-selling smartphones, followed by HONOR with four spots, the highest ever for the brand. vivo and OPPO captured two and one spot, respectively. Chinese consumers purchased over 980 smartphone models in 2022, down from 1,100 in 2021.

Apple contributed over 10% of China’s smartphone sales volume in 2022. The iPhone 13 was the best-selling smartphone in China with a 6.6% market share, rising from the third spot in 2021 with a 2.3% share. Also, the iPhone 13’s sales more than doubled in 2022 compared to the previous year. The iPhone 13 was followed by the iPhone 13 Pro Max and iPhone 13 Pro in the next two spots. These three iPhones contributed to 60% of Apple’s smartphone sales in China in 2022. This was the first time that Apple’s Pro variants were in the top 10 list for China.

China Top 10 Best-selling Smartphones Unit Sales Share, 2022

HONOR’s best-ever show in the top-10 list was driven by its strong rebound through the diversification of its offline presence. The brand also expanded its footprint across the mid-tier and entry-level price bands during the year. The HONOR X30 was the best-selling Android phone in China with a 1.8% market share. Also, the HONOR Play 20 was the most affordable and only non-5G smartphone on the list. The HONOR X30 and HONOR 60 were the only smartphones on the list with a Qualcomm chipset.

vivo’s Y33s 5G and Y76s took the seventh and ninth spots, respectively. These smartphones contributed 16% to vivo’s sales in China in 2022. The vivo Y33s featured among the top three best-selling smartphones in July 2022, while the Chinese New Year holiday sales helped the vivo Y76s in entering the top-10 list. OPPO’s mid-tier smartphone A56 5G took the fifth spot in 2022 with a 1.7% market share, like its predecessor A55 5G in 2021.

Overall, the share of the top 10 models in China has been flat at around 22% for the past three years due to the continuous annual sales decline in the country’s smartphone market. Except for the iPhones, all smartphones in the 2022 list were priced at less than $500. Further, there were nine 5G-enabled smartphones on the 2022 list, compared to six in 2021. Competition in the market is heating up, and the top 10 smartphones’ share is expected to decrease by 2023.

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

Karn Chauhan

Akshay R S

2022 Global Smartphone Shipments Lowest Since 2013; Apple Regained No. 1 Rank with Highest-Ever Operating Profit Share of 85%

The global smartphone market declined by 18% YoY to reach 304 million units in Q4 2022.
Apple replaced Samsung as the top smartphone player in Q4 2022, driven by the recent launch of the iPhone 14 series.
The 2022 global shipments declined by 12% to 1.2 billion units, the lowest since 2013.
Global smartphone revenue declined by 9% to $409 billion, the lowest since 2017.
Apple achieved its highest-ever global smartphone shipment, revenue and operating profit share in 2022.

London, New Delhi, Hong Kong, Seoul, Beijing, Denver, Buenos Aires – February 3, 2023

The global smartphone market remained under pressure in Q4 2022 with shipments declining by 18% YoY to the lowest level for a holiday quarter since 2013, even as they grew by 1% QoQ to 303.9 million units, according to the latest research from Counterpoint’s Market Monitor service. Shipments for the full year 2022 also declined to 1.2 billion units, the lowest since 2013.

Commenting on overall market dynamics, Senior Analyst Harmeet Singh Walia said, “The war in Ukraine, inflationary pressures, economic uncertainty and macroeconomic headwinds kept the consumer sentiment weak in 2022 while smartphone users reduced the frequency of their purchases. The smartphone market remained under pressure in the fourth quarter of 2022 as the cost-of-living crisis, shortage in the labor market and a decline in consumers’ purchasing power resulted in double-digit declines in the shipments of each of the top five smartphone players.”

Consequently, global smartphone revenue and operating profit also saw a decline, although to a lesser degree than in shipments. An increased mix of premium phone offerings by major OEMs drove up the overall average selling price (ASP) by 5% YoY in 2022. The 9% decline in revenue, while lower than in shipments, resulted in annual smartphone revenues amounting to $409 billion, the lowest since 2017. A larger decline was prevented by a 1% growth in Apple, the only top five smartphone OEM to do so.

Commenting on Apple’s performance, Research Director Jeff Fieldhack said, “having proficiently managed its production problems, Apple was able to weather a year already marred by economic and geopolitical turmoil better than other major smartphone players. Its iPhone Pro series continued performing well and its share of iPhone shipments could have been even higher if not for the production issues caused by the COVID-19 breakout at the Zhengzhou factory, which produces the vast majority of Pro series volumes. As a result, some Pro series volumes got pushed to January.”

Consequently, its shipment, revenue and operating profit declined YoY in Q4 2022. However, it outperformed a struggling smartphone market in terms of shipment, revenue and operating profit growth, in turn achieving its highest-ever shares of 18%, 48% and 85% in these metrics respectively, in 2022.

Apple also benefited from the premium segment, its primary constituency, being less severely affected by the economic and geopolitical uncertainties that marred the year. Moreover, mature smartphone users are now choosing premium devices that last longer.

Elaborating on the ‘premiumization’ trend, Research Director Tarun Pathak said, “premiumization can also be seen within the Android ecosystem and is being led by Samsung with its foldable smartphones. As a result, Samsung was the only top five OEM besides Apple to see a 1% growth in revenue, even though its shipments declined by 5% in 2022 and operating profit declined by 1%. The performance of its flagship smartphones was stronger than market projections. Nevertheless, with a smaller profit decline than the overall smartphone market, its operating profit share increased slightly to 12% in 2022.”

Chinese smartphone players suffered from domestic lockdowns for much of the year in addition to facing global economic and geopolitical difficulties. As a result, the shipments of Xiaomi, OPPO* and vivo fell by more than 20% each. Despite offering premium phones at aggressive margins, Chinese brands are yet to make headway in the premium market and have not been able to capitalize completely on Huawei’s decline. Unsurprisingly, then, their revenue as well as operating profit saw double-digit declines.

We expect the market to remain under pressure until the end of the first half of 2023 and to start recovering thereafter.

*OPPO includes OnePlus from Q3 2021

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

Background

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

Analyst Contacts

Harmeet Singh Walia

Tarun Pathak

Jan Stryjak

Follow Counterpoint Research

iPhone 14 Pro, Pro Max Lead US Sales in Latest Apple Launch Day

Apple announced the new iPhone 14 series on September 9, five days before last year’s iPhone 13 announcement. Apple and carrier stores across the country opened their doors at 8 am on September 16 for the official launch of the iPhone 14 and iPhone 14 Pro and Pro Max. Here are the seven key takeaways from the launch:

Inventory is much improved over last year’s launch which was affected by component shortages
- At opening, many Apple stores still had plenty of inventory for those looking to purchase iPhones as walk-ins, although the supply is waning now and some Pro Max models are on back order at carriers. This was very different compared to last year where customers often had to have devices shipped to them during the launch period due to shortages.

Sources: Apple.com, carrier websites

iPhone 14 Pro Max and iPhone 14 Pro lead early sales
- Early adopters and upgraders continue to opt for the Pro models instead of the base iPhone 14. This is typical for the early months of a new iPhone launch. Many are upgrading from older devices such as the iPhone X series. Fewer are upgrading from the iPhone 13 Pro series. The new deep purple color is a forerunner for color choice.

iPhone 14 – early upgraders are hesitant
- Apple store and carrier reps will have a hard time convincing iPhone owners to purchase an iPhone 14 as it is almost identical to the $100 cheaper iPhone 13. Some of the improvements are an additional core on the A15 bionic chip, a 1.6% bigger battery, a slightly wider F1.5 aperture 12MP rear camera, along with crash detection and Emergency SOS via satellite (which hasn’t rolled out yet).
- Savvy customers will know these differences and either hold off or go for the iPhone 13 instead. Reps may also advise iPhone 13 users not to upgrade, especially in cases where devices still need to be paid off or no tangible benefit can be found for an upgrade.
Carrier pre-order deals are similar to last year, but Verizon not the forerunner anymore
- Verizon, AT&T and T-Mobile have similar pre-order deals compared to last year, offering up to $800 off for the base model and up to $1,000 off for the Pro series devices with trade-ins and unlimited plans. Verizon’s iPhone 14 Pro promotion offers another $200 via e-gift card for switchers. This is worse compared to last year when it offered an extra $500 via Prepaid Mastercard.
Apple store trade-in values are less competitive than last year
- The highest trade-in values for Apple phones this year are $720 for an iPhone 13 Pro Max and $600 for an iPhone 13 Pro. Last year’s offers were better at $790 for an iPhone 12 Pro Max and $640 for an iPhone 12 Pro. Lower trade-in values make Apple’s own promotions weaker year over year.

Source: Apple.com

eSIM woes a mixed bag
- Having eSIM-only iPhones was a big point of concern for reviewers and media as it makes switching from multiple SIM cards more difficult, especially when travelling in other countries where eSIM isn’t as widespread.
- People who are looking to purchase a US iPhone and send it to someone abroad are also more hesitant to do so with the iPhone 14.
- eSIM activations have been going smoothly at carrier store locations, according to reps. However, there are complaints coming from people trying to transfer their eSIMs over themselves, as this is a new and unfamiliar process for many. In addition, iOS 16 introduced a bug that impacted new device activations, which required a firmware update to iOS 16.0.1 to fix the issue.
Store traffic is managed by Apple’s appointment system
- Apple has followed a system for several years now where people need to book an appointment to purchase a device. The long lines we see now are for those looking to grab an appointment spot to purchase a device. The hype of previous iPhone launches is more subdued in today’s environment.

Conclusion

The iPhone 14 series is off to a strong start, especially for the iPhone 14 Pro and Pro Max. It remains to be seen how the iPhone 14 stacks up compared to the similarly spec’d and more affordable iPhone 13. However, the success of the iPhone will likely continue despite the current state of the economy as Apple products are more shielded from inflationary pressures and consumers continue to see strong promotions to help sell devices.

AT&T Reports Strong Q2 Numbers as Investors Fret Over Free Cash Flow Woes

AT&T announced its earnings for Q2 2022 on July 21, delivering strong results for its core mobility business. Despite macroeconomic headwinds, AT&T was able to deliver strong net additions for both its postpaid and prepaid businesses, at 813,000 and 196,000 respectively. Service revenues were up 2% QoQ and about 5% YoY on the back of strong subscriber growth. Equipment revenues were down 8% QoQ, mainly due to spillover demand for the Apple iPhone 13 in Q1 2022 following a supply-demand imbalance in Q4 2021. But equipment revenues were up 7% YoY, suggesting no slowdown in consumer spending on devices despite the highest levels of inflation in 40 years.

AT&T was able to manage strong net additions and minimal churn despite inflation-related price increases. During Q2, AT&T increased prices on single-line plans by $6 per month and on family plans by $12 per month, but this didn’t increase churn or drive customers to Verizon or T-Mobile. One reason for this is AT&T’s strong promotional lineup, which the operator suggested would remain stable in the second half of this year. AT&T offered up to $800 off the Samsung Galaxy S22 series with a trade-in of any Galaxy S-series or Note-series device, regardless of age and condition, as long as the customer chose an unlimited plan. A similar offer of up to $700 off with a trade-in and unlimited plan was available on the iPhone 13 series. For more information on model-level sales by channel, check out Counterpoint’s US Channel Share Tracker.

AT&T also continued seeing strong uptake for its fiber services with 316,000 net additions, which more than offset the decline in legacy internet services. AT&T’s total consumer fiber subscriber base increased to 6.6 million. The company maintains its plans to lay more fiber after already expanding its footprint by 2 million locations so far this year.

While AT&T reported strong performances for its mobility and fiber businesses, there were signs of weakness this quarter and on the horizon. AT&T’s wireline business was a weak spot in the company’s performance, with its revenues declining 7.5% YoY. Besides, AT&T CEO John Stankey noted that the payment cycle was lengthening as prepaid customers struggle to pay their bills on time, a trend that tends to emerge amid economic hardship. The company also warned that it saw the macro environment souring in the second half of 2022 and into 2023. But Stankey remained confident that AT&T would be relatively insulated, noting that the low end of the market was more likely to be impacted by inflation and a possible recession.

Despite the relatively strong performance that AT&T managed during Q2, share prices were down over 9% following its earnings call, primarily due to a reduction in free cash flow guidance for 2022. AT&T managed only $1.4 billion in free cash flow for Q2, resulting in the company lowering its guidance from $16 billion for the full year to $14 billion. Free cash flow so far this year only amounts to $4.2 billion, meaning AT&T will need to manage an average of $5 billion per quarter for the rest of the year to meet its guidance. Free cash flow is being held back by high capital expenditures and vendor financing payments, which were up 32% and 38% respectively compared with the same period last year. High levels of capex are expected at least through the end of this year as AT&T ramps up its 5G C-band deployment and continues to lay fiber to more locations.

Follow these links for insights on T-Mobile and Verizon.

iPhone SE 5G, new iPad Air with M1 SoC, Mac Studio with M1 Ultra SoC & more announced at Apple Event

At its first launch event of 2022, titled “Peek Performance”, Apple announced a new iPhone SE with refreshed hardware and 5G connectivity, a new iPad Air, a powerful new desktop computer, and much more. Apple also announced its most powerful SoC, the M1 Ultra, which completes the first generation of the Apple Silicon family. Below is a quick look at everything that Apple announced.

iPhone SE 5G: Affordable entry point to Apple ecosystem

The new iPhone SE 5G looks the same as the 4G iPhone SE that was launched back in 2020. In fact, it carries the iPhone 6 design language and compact form factor, with two major changes. Firstly, you get the A15 Bionic SoC under the hood, which is the same powerful chipset that we have seen on the iPhone 13 series that was launched in September 2021.

Source – Apple

The iPhone SE model with a 4.7-inch HD screen, thick bezels, and a physical Touch ID button may seem outdated, but there is still a market for this type of device. According to Counterpoint Research’s Smartphone Model Share Tracker, Q4 2021, the 4G iPhone SE 2020 accounted for 12% of Apple’s total iPhone unit sales from its launch in Q2 2020 to Q4 2021. Globally, Japan and US are the biggest markets for the iPhone SE. It was also among the best-selling smartphones of 2021, globally.

Apple claims that the new SE model is almost 2.2x faster than iPhone 8, and over 5x faster than the iPhone 6s. The 12MP camera on the SE misses out on sensor-shift image stabilization as seen on the 13-series. But there are some improvements on the computational photography side, which includes Deep Fusion, Portrait effects and Smart HDR 4.

The target audience for Apple seems to be these iPhone 6s to iPhone 8 users, who still prefer the form factor, but are looking for faster connectivity and new features. Though one thing to note here is that, unlike the iPhone 12 and iPhone 13 series, the new iPhone SE does not support mmWave 5G, and only comes with Sub-6GHz.

Source – Apple

The iPhone SE 5G is priced at $429 for the base model with 64GB storage, which is about $30 more than iPhone SE 2020 which was launched at $399. Despite the slightly higher entry price, we expect the new iPhone SE to do well.

iPad Air 2022 with 5G, M1 SoC: Pro Experience on Budget

Apple also announced the refreshed iPad Air model which is now powered by the M1 SoC, the same as the iPad Pro models and the MacBook Air M1. The new iPad Air follows the design language as the Pro models, featuring a bigger 10.9-inch screen with 500 nits of brightness.

The Touch ID sensor is now embedded in the power button, features stereo speakers along the top and bottom. What’s more, the front 12MP camera now supports the centerstage feature as well to automatically pan and keep you in the center in video calls.

Other features such as support for Apple Pencil, Magic Keyboard, and Smart Keyboard are also present. The iPad Air (2022) will be available in both Wi-Fi and Cellular (5G) modes, and two storage options – 64GB and 256GB. The Wi-Fi-only base model starts at $599, whereas the Wi-Fi + Cellular model starts at $749.

Source – Apple

M1 Ultra SoC, Apple’s most powerful ARM-based Custom Processor

In the transition to move from Intel-based processors to Apple Silicon, Apple announced the M1 SoC. It was followed by the M1 Pro and M1 Max SoCs for laptops and Mac Mini. At the “Peek Performance” event Apple introduced the fourth and final member of the M1 family, the M1 Ultra. Apple says it is the most powerful ARM-based custom processor designed for Mac Studio desktop computers. It is essentially two M1 Max chips that are connected together.

Source – Apple

Apple is calling it UltraFusion interconnect architecture where a silicon interposer is used to offer bandwidth of up to 2.5TB/s. So, instead of having two separate chips connected to the motherboard, the UltraFusion solution helps in reducing latency. As the M1 Ultra is essentially two M1 Max SoC, it features:

A 20-core CPU (16-Performance cores, four-efficiency cores)
64GPU cores
32-core Neural Engine
114 billion transistors

Source – Apple

In terms of Memory bandwidth, the M1 Ultra SoC can reach 800GB/s and can be configured to have 128GB of unified memory. With all this power on hand, the M1 Ultra can decode media and simultaneously play back up to 18 streams of 8K ProRes 422 video. It can also support four 6K Pro Display XDR and one 4K display.

Studio Display: High-res Screen with Hi-Fi Audio

One of the other interesting products announced by Apple includes the Studio Display. This $1,599 Studio Display comes with a 27-inch, 5K Retina screen (5120×2880 pixels), and 600 nits brightness.

Source – Apple

Given the current work-and-learn from home scenario, the Studio Display includes a three-mic array and six-speaker system with support for Spatial Audio. There is also a 12MP front camera with a centerstage feature for video calls on apps like Webex, FaceTime, and Zoom. These features are enabled by the A13 Bionic chip that powers the Studio Display, along with “Hey Siri” voice command.

Source – Apple

In terms of connectivity, the Studio Display features one Thunderbolt 3 port connect and charge compatible Mac, and three USB-C ports for connecting your accessories. The Studio Display comes with two choices of stands – one which lets you tilt the screen up to 30-degrees, the other that lets you adjust the height as well. There is also a VESA mount option that lets you tilt the screen horizontally or vertically, depending on your needs.

Mac Studio: Powerful Desktop Content Creators and Creative Professionals

The Mac Studio is a small, yet powerful desktop computer that looks like a Mac mini, but packs a lot of punch inside. It is designed considering the needs of content creators, film studios, professional photographers, and animators in mind. Users can choose between M1 Max or M1 Ultra SoC model depending on their workflow.

Source – Apple

In terms of connectivity, the Mac Studio has four Thunderbolt 4 ports and a 10Gb Ethernet port. There is an HDMI out port, an audio jack, and two USB-A ports as well. Bluetooth 5.0 and Wi-Fi 6 connectivity is also available on-board. Lastly, the front of the Mac Studio also features two USB-C ports and an SD card slot. Price starts at $1,999 for the base model with the M1 Max chip, whereas the M1 Ultra chip variant starts at $3,999.

Source – Apple

Apple did throw some performance numbers saying that the M1 Ultra powered Mac Studio offers 90% faster performance than a Mac Pro powered by Intel’s 16-core Xeon processor. It is also roughly 60% faster than a 28-core Mac Pro. Lastly, Apple did make a big claim that the M1 Ultra has the fastest GPU shipped on a Mac yet. Given how M1 family chipsets have offered peak performance, it remains to be seen how far these claims hold when users start using them.

Other Announcements from Apple TV+ to new colors for iPhone 13 series

Besides these big announcements, Apple also announced two new color options for the iPhone 13 series. The vanilla iPhone 13 will come in a new Green color tone, whereas the Pro model will be available in the Alpine Green color variant.

And lastly, for baseball fans, Friday Night Baseball will now be streaming on Apple TV+.

Vietnam Smartphone Shipments Double QoQ in Q4 2021, Up 15% YoY; Samsung Retains Top Spot

Vietnam’s smartphone shipments soared 104% QoQ in Q4 2021.
Samsung retained the top spot, capturing 28% share, followed by vivo (18%) and OPPO(17%).
With its iPhone 13, Apple surpassed Xiaomi to rank fourth, its best ever show in Vietnam.
For the full year of 2021, smartphone shipments increased 7% YoY.

Beijing, Seoul, Taipei, London, Boston, Toronto, New Delhi, Hong Kong – February 10, 2022

Vietnam’s smartphone shipments increased 15% YoY and 104% QoQ in Q4 2021, according to Counterpoint Research’s Monthly Vietnam Channel Share Tracker. After crossing the post-pandemic phase of pent-up demand, smartphones remained in high demand throughout the year, despite the market facing many difficulties, including macroeconomic worries, supply chain issues and the emergence of new COVID-19 variants. The year 2021 also saw Samsung and Apple registering their highest ever shipments in Vietnam.

Top OEMs’ Market Share in Vietnam, Q4 2020 vs Q4 2021

Source: Counterpoint Research’s Monthly Vietnam Channel Share Tracker
Notes: Xiaomi includes POCO and Redmi; OPPO includes OnePlus; Figures may not add up to 100% due to rounding.

Commenting on the quarterly performance, Senior Research Analyst Ivan Lam said, “Vietnam’s smartphone market has been dominated by offline channels. COVID-19 forced the government to impose multiple lockdowns, which hugely impacted the mobile phone distribution chain. As a result, shipments in Q3 2021 reached their lowest point in 2021. A few key positive factors drove up the numbers in Q4 2021. First, increasing vaccination rates helped offline channels move towards normalcy. Second, Apple’s iPhone 13 and other new launches, some pent-up demand and the approaching Vietnamese Lunar New Year stimulated purchase activities. Third, Samsung and Chinese brands managed to resume their supply and logistics activities in Vietnam. Lastly, the country’s major cities such as Ho Chi Minh City released guidelines that required people entering these cities to show a QR code from a mobile app to prove their vaccination status or recovery from COVID-19. This also pushed people to switch to a smartphone or an upgrade.”

Apple was the fastest growing brand in Q4 2021 in YoY terms. With a hair’s breadth, it surpassed Xiaomi to capture the fourth highest market share during the quarter. Lam added, “Apple enjoys a good place among Vietnamese consumers. In 2021, Apple enhanced its distribution strategy in Vietnam. It pushed online sales through Lazada Apple Flagship Stores and boosted “mini Apple Stores” by working with retailers, although there are already Apple Zones in Thegiodidong stores and F.Studio in the FPT shops system. Also, in Vietnam, 5G smartphone penetration is increasing gradually, supporting iPhone 13 sales.”

Vietnam Smartphone Shipment Share, 2020 vs 2021

Source: Counterpoint Research’s Monthly Vietnam Channel Share Tracker
Notes: Xiaomi includes POCO and Redmi; OPPO includes OnePlus; Figures may not add up to 100% due to rounding.

Vietnam’s smartphone shipments grew 7% YoY in 2021. Research Director Tarun Pathak said, “Vietnam is one of the most active consumer electronics markets in Southeast Asia, as well as one of the Asian countries with highest internet penetration. Although COVID-19 continued to disrupt the market, the demand was always there. We expect this rebound to continue in 2022.”

Apple showed the highest YoY growth in 2021 at 119%, followed by vivo at 24% and Xiaomi at 19%. Although OPPO (including OnePlus) ranked second in terms of market share in 2021, its growth declined 6% YoY during the year. Senior Research Analyst Glen Cardoza said, “OPPO was hugely impacted by the COVID-19 lockdowns in Q2 and Q3 because its main strength is offline channels. Also, OPPO experienced a shortage of 4G SoCs. However, it bounced back in Q4, showing 88% QoQ growth. We see OPPO showing stable performance in 2022.”

Online channels made up 15% of the total shipments in 2021, growing 8% YoY. It’s not a big jump because the country’s logistics systems and digital payment ecosystem are still in the process of being developed.

Despite all difficulties, Vietnam’s smartphone market is expected to continue to grow in 2022 and be one of the most competitive markets in Southeast Asia.

Please reach out to press (at) counterpointresearch.com for press comments and enquiries.

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

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Analyst Contacts:

Ivan Lam

Glen Cardoza

Tarun Pathak

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iPhone 13 Helps Apple Break Many December Quarter Records

Apple posted a record December quarter which included record revenues, record installed base, tremendous growth in all business units (exception: supply constrained iPad), and double-digit revenue growth in most regions (Japan the lone region with a decline of 14%). If there was suspicion that the iPhone 13, Apple’s second generation 5G smartphone, would be a weak upgrade, these results squashed this thinking. Counterpoint Research estimates Apple led all competitors, shipping 67.2 million smartphones during Q4 2021.

Details of the quarter:

iPhone: iPhone 13 had a great opening full quarter — a record $71.6 billion in revenues, which was 9% growth over Q4 2020. Additionally, iPhones were supply constrained but less supply constrained than most of its competitors. Apple does an admirable job locking in components by using many customized parts and locking in volumes early — even if it means additional upfront costs. In addition, with large volumes and limited SKUs, it has massive scale to be suppliers’ #1 customer. Apple has even invested in R&D support for some suppliers.

In multiple countries, the iPhone 13 Pro Max was the top seller, bumping Apple ASPs and overall revenues. The elongating life cycles are now baked into Apple sales. There is less of a large year followed by a weaker year. The iPhone holding period has grown — over three years in most regions and almost four years in some regions. This means a more regular upgrade since there is always a substantial part of the base holding an aged iPhone ready to be upgraded.

Apple will likely see good sales longevity of the iPhone 13 family. It will continue to heavily market its camera functionality (for example, Cinematic mode), battery performance, and durability. This will help justify the iPhone’s higher cost relative to most of its Chinese competitors.

Mac: Mac saw the largest percentage growth among Apple business units, growing 25% YoY in Q4 2021. Mac revenues rode the wave of increased PC purchases during COVID-19. Second, its in-house designed M1 chips are now powering the latest Macs and have impressive performance metrics. Finally, Apple has gained PC market share within education and business verticals.

iPad: iPad was the single business unit which saw revenues decline. Revenues declined 14% YoY in Q4 2021. Main reason for the decline was component shortages. Common components between the iPad and iPhone were prioritized for iPhones. Supply constraints for iPad were worse in Q4 than Q3. Pent-up demand within education and business will likely help sales in Q1 and Q2 as component shortages ease.

Apple Watch: Apple Watch and AirPods make up the vast majority of revenues which are lumped into ‘Wearables, Home and Accessories’. The category grew 13% YoY in Q4. Apple Watch continues to gain momentum. Apple Watch will likely continue to see revenue growth as the health and fitness utility continues to improve. Health coach, sleep analysis and heart rate analysis during exercise continue to improve. Apple continues to successfully market health and safety features, such as fall detection and the ECG feature for early detection of irregular heart rhythms.

Services: Apple services hit new highs in Q4 2021, growing 24%. There are over 785 million active service users. Music, video and the app store registered all-time revenue highs. Apple continues to see very low churn to Android and receives very high satisfaction ratings for all of its hardware. The active installed base of Apple devices has eclipsed 1.8 billion – this is a great flywheel for growth within services.

Apple Fitness+ is a unique service. Combined with Apple Watch, it has some interesting synergies for tracking health improvements. With its $203 billion in cash, there are other accompanying fitness hardware companies it could purchase (think Peleton) or develop on its own to increase the utility of Apple Fitness+.

Regions: Apple’s installed base of devices grew in every region. Two years ago, China was a huge problem due to its slowing economy and US-China trade tensions. In Q4 2021, China witnessed 21% growth, highest among all regions. Rest of Asia Pacific grew an impressive 19%. Japan was the lone region which did not see growth — revenues fell 14%. There are a few reasons for the decline in Japan. The main one being the Japanese government’s ban on SIM locking. This has hit operators’ ambition to subsidize iPhones if consumers can freely switch operators.

Outlook: Apple did not give formal guidance for the March quarter. However, the company did comment that its assumption was COVID-19 pandemic would not worsen. In addition, it is expecting solid YoY growth for the March quarter despite some challenging comps due to last year’s lockdowns, which helped companies such as Apple, Netflix and Amazon.

Often successful brands have difficulty keeping the interest of the next generation, which wants to be different. This has not been the case for Apple. It remains an aspirational and ‘hip’ brand to the young. This makes the outlook for Apple, at least medium-term, very promising.

Global Annual Smartphone Market Grew for the First Time Since 2017; Record Annual Shipments for Apple

Global smartphone shipments grew 4% YoY to reach 1.39 billion units in 2021. Q4 2021 shipments declined 6% YoY to reach 371 million units.
Samsung led the global smartphone market in 2021 with annual shipments of 271 million units.
Apple, Xiaomi, OPPO^ and vivo recorded their highest-ever annual shipments.
The top five brands gained share thanks to a significant decline by Huawei, and LG’s exit from the market.
Apple surpassed Samsung to become the top smartphone vendor in Q4 2021, shipping 81.5 million units.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – January 28, 2022

The global smartphone market grew for the first time since 2017, with annual shipments reaching 1.39 billion units in 2021, according to the latest research from Counterpoint Research’s Market Monitor service. Despite the 4% annual growth, however, annual shipments remained below the pre-pandemic level due to continued COVID-19 impacts as well as component shortages.

Commenting on the overall market dynamics, Senior Analyst, Harmeet Singh Walia said “the global smartphone recovery in 2021 followed a pandemic-hit 2020 and subsequent pent-up demand in regions like North America, Latin America and India. Growth in the US was driven largely by demand for Apple’s first 5G-enabled iPhone 12 series seeping through to the first quarter of 2021; demand which continued throughout the year ending on a strong Q4 thanks to Black Friday and holiday season promotions. India, too, had a good year due to higher replacement rates, better availability and more attractive financing options in mid-to high-tier phones. However, China, the world’s biggest smartphone market, continued to decline due to supply-side issues caused by the ongoing component shortages, as well as demand-side issues resulting from lengthening replacement cycles.”

Singh Walia added, “the market recovery could have been even better if not for the component shortages that impacted much of the second half of 2021. The major brands navigated the component shortages comparatively better and hence managed to grow by gaining share from long-tail brands.”

Samsung shipped 271 million units in 2021, up 6% from 2020, mainly due to increased demand for its mid-tier A and M series smartphones. Samsung’s annual shipments grew despite supply-side issues starting with its Vietnam factory being shut in June due to COVID-induced lockdown. While its shipments grew YoY to reach 67 million in the last quarter, the growth was limited by intensifying competition from Apple and Chinese brands in some of its markets such as India and Latin America. Nevertheless, the brand gained a good mind share with the launch of its third-generation foldable phones that did well in the premium segment.
Apple’s global smartphone shipments grew 18% YoY to reach a record 237.9 million units in 2021 due to strong performance by the iPhone 12 series. Apple also grew in key markets such as the US, China, Europe and India. In China, it became the top smartphone brand in Q4 after six years thanks to the iPhone 13, consequently overtaking Samsung as the top smartphone globally in Q4 2021.
Xiaomi’s global smartphone shipments grew 31% YoY to reach a record 190 million units in 2021. The bulk of this growth was in the first half of the year, driven by regions such as India, China, South-East Asia and Europe. While its shipments declined in Q3 after a record Q2, it grew marginally in Q4 to ship 45 million smartphones despite slipping to the fifth position in China as it faces severe component shortages.
OPPO^ was another of the top smartphone players to achieve record 2021 shipments, growing by 28% YoY to 143.2 million units. Its performance in China remained strong in the first half of the year, while it grew in Europe, the Middle East and Africa and South-East Asia in the second half. However, shipments remained flat at 33.5 million units in the last quarter due to supply-side constraints.
vivo grew by 21% YoY to reach annual shipments of 131.3 million units in 2021. vivo leveraged its strong offline penetration and a wide-ranging product portfolio to achieve its highest-ever annual shipments globally. In Q4 2021, however, it declined by 9% YoY, as it lost the number one spot in the Chinese smartphone market to Apple.

Other OEMs also had a notable 2021.

Motorola was the fastest-growing brand among the top 10 smartphone OEMs based on annual global shipments. It took advantage of LG’s exit in the US, where it gained share in the sub-$300 price band by offering a strong lineup of widely available devices. It also continued to perform strongly in Latin America while expanding in overseas markets (including a resurgence in Europe).

realme entered the top five android OEMs globally for the first time as its affordable 5G strategy started to pay off. It also did well in markets such as India where it had a record year. The brand continued to expand its presence in new markets such as LATAM, Europe and the Middle East and Africa.

HONOR managed to finish its first full year as an independent OEM with a ranking among the top ten smartphone OEMs globally, and is already among the top five OEMs in China where it benefitted from the reinstation of its relationship with its suppliers since its separation from Huawei.

Transsion Group continued to perform well in its key markets such as South Asia and the Middle East and Africa. TECNO did well in the entry-tier, while Infinix gained the most in the entry-to mid-tier segment, especially in the countries where it is currently expanding. Going forward, Transsion’s fundamentals are expected to remain solid, as it continues to hold significant clout in its home market of Africa.

Research Director Jan Stryjak concluded, “2021 was a tough year, with component shortages adding further pressure to a market battling with lingering COVID-19 issues. However, the world is slowly getting on top of the pandemic, despite the threat of a resurgence towards the end of last year, and with supply issues hopefully coming to an end towards the middle of this year, there is reason to be optimistic for good growth in 2022 as a whole.”

^Note: OPPO includes OnePlus since Q3 2021

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 World, US, China and India.

Some of our latest regional smartphone market analyses:

India Smartphone Market Crosses 169 Million Units in 2021 to Register Highest Ever Shipments Till Date

Apple Reaches its Highest Ever Market Share in China

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

Analyst Contacts:

Tarun Pathak

Harmeet Singh Walia

Aman Chaudhary

Varun Mishra

Karn Chauhan

Follow Counterpoint Research

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