The smartphone market continued to be hot in 2019, but there was a rather striking profit concentration, figures for the last quarter show Apple with a 66% share of profits made in the smartphone market, according to a report recently published by Counterpoint. Research For this last period of the year, Samsung took 17% of the profit, which represents between 20 and 30% of smartphones in the world.
In third, fourth and fifth place were the Chinese smartphone makers, Oppo, Vivo and Xiaomi. The largest relevant sales volume of these companies was due to markets in countries such as China and India. Counterpoint's report also places a strong emphasis on Apple's profit from its services such as iCloud, Apple Arcade, Apple Music, News + and others. It's not hard for a loyal user to keep $ 100 on the company with tuition and other extra services with programs, storage, and so on.
"The loyal base of premium users in key markets such as the US, EU and Japan is one reason Apple can still operate at a level of profit that its competitors can only desire. Now, with a strong service strategy, Apple's overall ecosystem is strong enough to ensure a steady stream of revenue for years to come. "
Karn Chauhan of Counterpoint Research
Counterpoint Research also forecasts growth in the company's holiday profits, further strengthening the brand in gifts and other miscellaneous purchases. But it's not all flowers, Chinese manufacturers, which once had even smaller slices, continue to grow, and Samsung is starting to focus on higher-margin phones like the Galaxy Fold. It is also worth mentioning that the fact that Apple makes more money does not mean that it is the company that sells most phones, in this regard, Samsung and Huawei tend to do better, with Oppo and Xiaomi close behind. Anyway, the smartphone market should return to a moment of growth in 2020, when we will see the handsets with 5G connection.