iPhone X Responsible for 35% of Total Worldwide Phone Profits in Q4 2017

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Apr 17, 2018.

  1. MacRumors macrumors bot

    MacRumors

    Joined:
    Apr 12, 2001
    #1
    [​IMG]


    The iPhone X accounted for 35 percent of total worldwide handset profits in the fourth quarter of 2017, according to new estimates shared this morning by Counterpoint Research.

    The device generated 5x more profit than the combined profit of more than 600 Android OEMs during the quarter, despite the fact that it was only available for purchase during the final two months of the year and in spite of reports pointing towards lackluster sales of the device.

    [​IMG]

    Other Apple iPhones, including the iPhone 8, iPhone 8 Plus, iPhone 7, and iPhone 7 Plus accounted for a second large chunk of global handset profits, with iPhones holding 8 of the top 10 profit share rankings. Apple was the most profitable brand with 86 percent of total handset market profits.

    While overall global handset profits declined by one percent compared to the fourth quarter of 2016, Apple's profits grew one percent year over year.
    Apple does not break out iPhone sales by device, so it is difficult to confirm Counterpoint Research's specific numbers, but Apple did set new revenue records in Q4 2017, earning $10.7 billion on $52.6 billion in revenue. The company sold a total of 46.7 million iPhones during the quarter.

    Similar reports and estimates published in the past have also confirmed that Apple's iPhones bring in the lion's share of smartphone industry profits, earning significantly more than its closest competitors like Samsung and Huawei. Apple has been the most profitable smartphone company for several years running.

    Article Link: iPhone X Responsible for 35% of Total Worldwide Phone Profits in Q4 2017
     
  2. Agit21 macrumors member

    Joined:
    Mar 9, 2016
    #2
    This is just insane, 8 out of 10 are Apple devices ^^
     
  3. Mefisto macrumors 6502a

    Mefisto

    Joined:
    Mar 9, 2015
    Location:
    The North
    #3
    I'm running low on snark and sarcasm, so suffice it to say that is pretty dope.
     
  4. thermal macrumors regular

    Joined:
    Aug 3, 2009
    Location:
    Vancouver, Canada
    #4
    No wonder other companies are falling over themselves to copy the iPhone X look.
     
  5. realeric macrumors 6502a

    realeric

    Joined:
    Jun 19, 2009
    Location:
    United States
    #5
    Too much profit = greedy. iPhone X could have been $749.
     
  6. csurfr macrumors 68000

    Joined:
    Dec 7, 2016
    Location:
    Seattle, WA
    #6
    I guess the X isn't the failure that so many wanted it to be.
     
  7. citysnaps macrumors 68040

    Joined:
    Oct 10, 2011
    Location:
    San Francisco
  8. Markoth macrumors 6502

    Markoth

    Joined:
    Oct 1, 2015
    Location:
    Behind You
    #8
    It's talking about profits, not individual devices. This means Apple has high margins, which most people knew.
     
  9. OldSchoolMacGuy macrumors 68040

    OldSchoolMacGuy

    Joined:
    Jul 10, 2008
    #9
    You're making a mistake in assuming the cost to produce the iPhone X is the same as every other phone. It's not. The iPhone X packed tech no other phone has and the development costs were more because of it.
     
  10. csurfr macrumors 68000

    Joined:
    Dec 7, 2016
    Location:
    Seattle, WA
    #10
    Absolutely correct, but you have to actually sell the devices to make that profit.
     
  11. ipponrg macrumors 6502

    Joined:
    Oct 15, 2008
    #11
    Fixed it for you. The iPhone X accounted for 35 percent of total worldwide handset profits
     
  12. citysnaps macrumors 68040

    Joined:
    Oct 10, 2011
    Location:
    San Francisco
    #12
    Same thought crossed my mind. Though many here will keep scratching for something to support that narrative, anyway.
     
  13. PickUrPoison, Apr 17, 2018
    Last edited: Apr 17, 2018

    PickUrPoison macrumors 65816

    Joined:
    Sep 12, 2017
    Location:
    Sunnyvale, CA
    #13
    Not sure of quantity sold, but Samsung looks like they’re pricing (or at least selling) barely above cost.
     
  14. Nunyabinez macrumors 68000

    Nunyabinez

    Joined:
    Apr 27, 2010
    Location:
    Provo, UT
    #14
    Though you do have to pay attention to the metric they are using.

    If sales weren't that great, but profits (revenue minus costs) are great, then it just means they managed to charge a massive premium.

    footnote: I have X and it is the best phone I have ever had, so I don't mind that I had to give Apple a lot of margin on it.
     
  15. WBRacing, Apr 17, 2018
    Last edited: Apr 18, 2018

    WBRacing macrumors 6502a

    WBRacing

    Joined:
    Nov 19, 2012
    Location:
    UK
    #15
    A single analyst dreams up statistics with no backing, easy when you have nothing available for others to challenge them with.

    That said, you cannot help but be wowed by this particular analysts credentials, which also manage to be ambiguously meaningless..

     
  16. Markoth macrumors 6502

    Markoth

    Joined:
    Oct 1, 2015
    Location:
    Behind You
    #16
    I don't believe anyone claimed Apple devices weren't selling well. I certainly didn't.
     
  17. nsayer macrumors 6502a

    nsayer

    Joined:
    Jan 23, 2003
    Location:
    Silicon Valley
  18. csurfr macrumors 68000

    Joined:
    Dec 7, 2016
    Location:
    Seattle, WA
    #18
    You're not wrong. I have a post just a few below that one where I had said that you have to have sold them to make that profit. Phones on a shelf or in a warehouse don't generate much for any company.
    --- Post Merged, Apr 17, 2018 ---
    Not you. The "analysts" that we read about so often here.
     
  19. apolloa, Apr 17, 2018
    Last edited: Apr 18, 2018

    apolloa macrumors G3

    apolloa

    Joined:
    Oct 21, 2008
    Location:
    Time, because it rules EVERYTHING!
    #19
    Just more proof how overpriced the iPhone X is. Massively so looking at this report. One hell of a markup.

    EDIT:

    Video of Steve Jobs himself advising of the dangerous path Apple is following:



    Video originally posted in this thread in the following post:

     
  20. usersince86 macrumors 6502

    usersince86

    Joined:
    Oct 24, 2002
    Location:
    Columbus, Ohio
    #20
    In the balance for marketshare and profit margin, Apple has historically leaned toward the profit side (and, to be fair, the high quality side). That won't change unless they need it to. So far, they don't.
     
  21. simonmet macrumors 68000

    simonmet

    Joined:
    Sep 9, 2012
    Location:
    Sydney, Australia
    #21
    Still made more from non-X phones though. And that was the X’s launch quarter. Interesting to see what Q1 2018 shows.
     
  22. citysnaps macrumors 68040

    Joined:
    Oct 10, 2011
    Location:
    San Francisco
    #22
    No, the X is reasonably priced. That does not mean, however, that everyone can afford one.


    "One hell of a markup."

    GPM is likely in the high 30% range, and certainly not unusual.
     
  23. b11051973 macrumors 6502

    Joined:
    Apr 8, 2006
    #23
    Build and sell a fraction of the phones of your next competitor, but make many times the profit. That's the kind of business I'd like to own. :)
     
  24. mejsric macrumors 6502a

    mejsric

    Joined:
    Mar 28, 2013
  25. trekkie604 macrumors 65816

    trekkie604

    Joined:
    Feb 25, 2008
    Location:
    Vancouver, Canada
    #25
    Nice, proof of how massively overpriced the X is. Lucky I returned mine.
     

Share This Page