Samsung Foldables Archives

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

Follow Counterpoint Research

Global Foldable Smartphone Shipments to Cross 100 Million by 2027

Global foldable smartphone shipments are projected to reach 101.5 million in 2027 from 78.6 million in 2026.
Samsung and Apple are expected to dominate the market.
Regional drivers, especially in China, combined with growing consumer willingness to buy foldables will help keep shipment growth buoyant.

Seoul, Boston, Beijing, Hong Kong, New Delhi, London – July 26, 2023

Global foldable smartphone shipments are expected to pass the 100-million mark by 2027, according to Counterpoint Research’s latest Global Foldable Smartphone Tracker and Forecast, with Samsung and Apple accounting for the biggest market share.

Global Foldable Smartphone Shipment Forecast by Brand & Foldable Share In Premium Segment, 2021-2027(E)*

*Premium segment considered to be above $600 average wholesale price

Commenting on growth expectations, Research Director Tom Kang said, “At the moment, foldables remain niche. But it is an important segment for brands looking to maintain leadership in innovation and a premium market presence.”

Kang added, “Samsung and the Chinese OEMs have been very active, especially in their home markets, with China emerging as the biggest market globally last year. If you want to make it in foldables, you have to make it there.”

Senior Analyst Jene Park said, “In the long term, we are waiting to see what Apple does. We are looking at 2025 as the possible year of iPhone’s foldable debut, which could provide another growth spurt for the segment.”

Park added, “When we look at the current consumer response, our latest Global Foldable Smartphone Preference Survey shows a willingness to purchase for the majority of respondents, most notably among current users. This is a good sign and tells us the hype around foldables is legitimate.”

Global Foldable Smartphone Survey, 2023

Question: Are you willing to purchase a foldable phone as your next device?

Source: Counterpoint Research Global Foldable Smartphone Preference Survey, 2023
Notes: N=1,000 per country across US, China, South Korea; Figures may not add up to 100% due to rounding

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

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press@counterpointresearch.com

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

Follow Counterpoint Research

Survey: 28% of US Smartphone Users Highly Likely to Opt for a Foldable as Next Purchase

Samsung is the most preferred foldable brand for 46% of the respondents.
49% of the respondents rank the flip-type foldable at the top, followed by the book-type foldable.
Apple, which is yet to launch foldables, is preferred by 39% of the respondents.

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

The foldable smartphone is the latest big innovation in the smartphone space, both in terms of hardware and software. The installed base of foldable smartphones in the US stood at 4.7 million in 2022, according to Counterpoint Research. To better understand opinions and preferences in the US around foldable smartphones, Counterpoint Research conducted a consumer study in the country. Some key insights from the survey:

28% of current smartphone users are highly likely to prefer a foldable smartphone as their next purchase.
Samsung is the most preferred brand for foldable purchase for 46% of the respondents, followed by Apple with 39% and Motorola with 6%.
Samsung has the highest stickiness in terms of foldable preference, with 92% of Samsung users planning to stick with the same brand when making a foldable smartphone purchase.
49% of the respondents ranked the flip-type foldable at the top, followed by the book-type foldable.
- More than half of the male respondents prefer the flip-type foldable, whereas the preference for the flip-type foldable is slightly lower among the female respondents at 47%.
- On the other hand, the preference for the book-type foldable is stronger among female respondents (40%) than male respondents (30%).
Respondents from a higher income bracket are more likely to purchase a foldable phone, with those having a monthly income of $10,000 and above most likely (41%) to opt for a foldable as their next smartphone purchase.

Foldable Preference in US: Key Survey Insights

Source: Counterpoint Research Consumer Study, US, 2022

Commenting on the survey findings, Associate Director of North America research Hanish Bhatia said, “Foldables have performed better in controlling the shift from Android to iOS. However, we don’t expect foldables to become the dominant form factor anytime soon in the US. Foldables will continue to co-exist with the candy bar design for years to come. We have seen different experiments with form factor in the past (namely LG Wing and LG G8X Dual Screen), but Samsung’s foldable devices have been the most successful by far.”

Research Director of North America Jeff Fieldhack added, “Samsung remains the first choice for foldable smartphones in the US. However, there is a lot of excitement among consumers for a foldable iPhone, which is evident in the survey. Motorola and other Android OEMs are also warming up to the foldable form factor to get a slice of the premium smartphone market in the US. Our US smartphone switcher data shows a large portion of Galaxy foldable users were originally Galaxy Note users, but foldables have not completely replaced the demand for Note series as some Note users shifted toward the Galaxy S series.”

BONUS VIDEO: Samsung Galaxy Z Fold 3 Review: 10 Months Later

The foldable market is experiencing rapid growth in sales and is expected to continue growing in the coming years with the entry of more OEMs and developments around foldable technology. In 2022, the foldables category occupied 1.1% of global smartphone shipments, but it scored a vital presence in the ultra-premium segment, taking about 7% of shipments of smartphones priced above $800. According to Counterpoint Research’s Global Foldable Smartphone Market Forecast, Q3 2022, the global foldable smartphone market is expected to reach 22.7 million units in 2023.

In the US, the high prices of foldable smartphones have essentially kept out young users from the market. High-income middle-aged American users have been the primary users of foldable smartphones. A more affordable price tag would expand the target user base. Experimentation with quirky colors has also drawn interest from female users, especially in the flip form factor. Although flip and fold remain the most popular foldable form factors, OEMs have showcased foldable prototypes with rollable, expandable and three-fold displays. Apart from the convenience of portability, foldables enhance user experience through immersive display, better selfies through the rear camera, and multitasking. But durability concerns and utility have also resulted in limited adoption of the devices.

Given the US smartphone market’s ASP and foldable phones’ price range, foldables could capture a significant share of the overall US smartphone market. Carrier subsidies remain key to premium device sales in the US, but durability, new features and the entry of other prominent players are important factors to boost the adoption of foldable phones.

ALSO WATCH: OPPO Find N Review: Small Wonder

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

Hanish Bhatia

Jeff Fieldhack

Arushi Chawla

Nitin Zod

Counterpoint Research

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

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Insights Tag： Samsung Foldables

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

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