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

[Shadar]

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.

They'd got a lot of R&D not to mention that new spaceship building to pay off. Need high GPM to do that, and decent volume.

Apple is the one tech firm that truly figured it all out. But surprised nobody has been able to knock them off their throne. History says its inevitable.
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Summing all the values in the bar chart the total is 90.4%.

Hardly anyone in South America has an Apple phone, most are various Samsung lower value models and LG etc. I fail to see how all those phones in Brazil, etc., only come to 9.6% of world total.

Therefore my conclusion is that this data is inconclusive, limited and perhaps biased. Therefore it should be disregarded, discarded, considered fictional, etc.

This is my personal conclusion judged from the above facts. You are free to disagree if you want to, for everyone has free will. LOL

A lot of tech firms don't make much profit outside of North America and Europe. Sell lots of volume though.

 

[melchiorsen]

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.

But what about the iPad? Why did Apple follow the lower margin route on that one?

 

[Shadar]

Just got a 6S for my wife. She wanted a bigger phone than her 5C but one that still has the home button and a headphone jack. So 7 and 8 were out. I wanted her to buy the SE but screen size won. I still have my 4S. Debating whether to grab a SE before home button and headphone jack are eliminated in all models.

Kudos to Apple for giving us choices!!! They didn't have to still have the 6 in the Apple Store we went to yesterday, but there they were. Thank you!!!!

Yeah, my wife and I are still using a 6 and a 6S, both with batteries that test out in the low 90 percentile range, so we're happy. Nice thing about Apple is you can often get 5 years out of a product before it's too far behind. And based on my experience, Apple stuff just doesn't break.

Unless you drop it from four stories up onto concrete. That's a very different story.

 

[nylonsteel]

Channel the profits to fix siri, home pod and release updated mac mini

 

[iSayuSay]

It means Android OEMs are struggling to make money. Of course they are, they’re all relying on Android to make their software and core functions. Apple does not. It’s like doing homework assignment, where Apple has its own idea from the get go (sometimes a few bad ones). But the rest of the students cheat by trickling the same source of solution.

Apple gets to take most success? Nothing strange here. Start with your own innovation, you’ll get there, droids?

 

[Darmok N Jalad]

But what about the iPad? Why did Apple follow the lower margin route on that one?

I suspect the better iPhone margins help allow Apple to sell the iPad for relatively cheap. Also, the iPad is a way to get people into the Apple ecosystem to use the AppStore and other services, and Apple hopes to sell iPad for education. It has to be their cheapest product to make that goal.

 

[cracksoup]

I find it hilarious that not only the 8 and 8 Plus are providing more profit for Apple than the “almighty Note 8” does for sammy, but also the 7 and 7 Plus from 2016. They are STILL higher up than the Sammy beast that every android fanboy bends over for.

Actually, I wouldn’t be surprised if the iPhone X provides more profits for sammy than their own phones combined thanks to the Samsung components used in the insanely popular iPhone.

 

[apolloa]

Look. These numbers don’t lie. You can stick your head in the sand as much as you want.

Now, what you can argue is that you will still be paying for software and services from Google and MS anyway on top of your Apple products. So it does not matter, you might as well pay less for the devices.

But next time you buy a $300 PC or Phone remember to thank the builder for the effort, not MS or Google.

You see, the gross profit margin of Lenovo or Acer is around %6 to %15. Those are the ones selling the Gillets required for MS and Google sell the blades and achieve those margins. Still MS with the Surface line tried it is trying to have bothways.

I don’t have my head in the sand, you ignoring the facts presented or misinterpreting them.

Heres some reports to read about iPhone parts orders being halved and low iPhone X sales:

https://www.macrumors.com/2018/02/20/nikkei-samsung-slash-oled-panels-weak-iphone-x/

https://www.macrumors.com/2018/01/29/apple-halve-iphone-x-production-in-q1-2018/

https://www.macrumors.com/2018/01/24/taiwanese-apple-suppliers-iphone-demand/

http://www.forbes.com/sites/ewanspence/2018/01/29/apple-iphonex-failure-sales-estimate-truth-marketshare-production/#5545e4913bd5

http://9to5mac.com/2018/01/30/wsj-iphone-x-demand-lower/

http://9to5mac.com/2018/01/19/kgi-lowers-iphone-x-sales-estimates-reiterates-6-1-inch-lcd-iphone-coming-in-fall/


So the fact it’s making so much money, yet it’s sales are performing below expectations indicates a massive mark up for profit, which in the video above Steve Jobs himself states is dangerous and only leads to failure.
But you carry on believing it’s selling well and ignore all the reports stating otherwise, these reports are also from the Wall Street Journel and KGI securities, but what do they know right?

 

[RemE]

If true, this does just spell greed, I like my X but this just chips away at my feelings for Apple. High cost plus ridiculous fees for repairs like the back panel etc. makes me just shake my head.

That video clip of Jobs talking about Apple's decline when he was at Next resonates pretty well today, hmmm

 

[apolloa]

From all my years watching these videos of Jobs, he changes his tone faster than anybody else.

If anything he introduced the iPhone at a price at the time that everyone thought was outrageous (since most people were buying cheap or free phones at the time). It was only when Apple realized that people weren't going to buy them in boatloads that they dropped the price. We are past the point where the price is really going to stop people from buying the iPhone in the United States. People will literally give up an arm and a leg for these things.

So your saying he’s talking a load of BS then? Or he doesn’t know what he’s talking about? Or is a hypocrite?

And the US is one market, not global which is where it’s not selling massively, I’ve never seen one outside a shop! So if it’s making that much profit, take note of Steve Jobs words...

 

[ericwn]

If anyone needed proof that iPhones were over priced.

...then look elsewhere as over a third of the profits were made by the model. Sounds like it’s priced just right.

 

[techwhiz]

What a flop. It should have been 40%!
Total profits from the phone market was 84.8% Dang it!
Make it 90%!!!!

SMH!
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Summing all the values in the bar chart the total is 90.4%.

That's because it is the 10 top phones in the chart, not all phones.
The other phones on the market constitute a measly 9.6%

 

[I7guy]

I don’t have my head in the sand, you ignoring the facts presented or misinterpreting them.

Heres some reports to read about iPhone parts orders being halved and low iPhone X sales:

https://www.macrumors.com/2018/02/20/nikkei-samsung-slash-oled-panels-weak-iphone-x/

https://www.macrumors.com/2018/01/29/apple-halve-iphone-x-production-in-q1-2018/

https://www.macrumors.com/2018/01/24/taiwanese-apple-suppliers-iphone-demand/

http://www.forbes.com/sites/ewanspence/2018/01/29/apple-iphonex-failure-sales-estimate-truth-marketshare-production/#5545e4913bd5

http://9to5mac.com/2018/01/30/wsj-iphone-x-demand-lower/

http://9to5mac.com/2018/01/19/kgi-lowers-iphone-x-sales-estimates-reiterates-6-1-inch-lcd-iphone-coming-in-fall/


So the fact it’s making so much money, yet it’s sales are performing below expectations indicates a massive mark up for profit, which in the video above Steve Jobs himself states is dangerous and only leads to failure.
But you carry on believing it’s selling well and ignore all the reports stating otherwise, these reports are also from the Wall Street Journel and KGI securities, but what do they know right?

A guess is still a guess no matter how many articles are written. It’s good for coffee table discussion, but I wouldn’t bet my portfolio on it. (See W. Buffet)

 

[skinned66]

Congratulations iPhone X folks, you just bought all of Tim Cook's cats grillz.

 

[tarnette]

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.

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

[doublepost=1524086907][/doublepost]

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.

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

[doublepost=1524087218][/doublepost]This seems suspect. Where did all these phones go? I kept hearing they were in short supply and they certainly were not in supply when I considered buying one for my wife in December. Plus, it did not feel like Apple was giving away the iPhone 8 Plus that we paid over $1000. Plus, would that not be out of SOP for Apple to narrow its margins for the 8 series?

 

[kdarling]

Not sure of quantity sold, but Samsung looks like they’re pricing (or at least selling) barely above cost.

I think you misread the chart. It's not showing the percent of profit made per phone, it's the percent of the total profit of all phones sold.

 

[Abazigal]

Volume is healthy from a shareholder standpoint and also for sustained long term growth. Not taking anything away from Apple here, but I feel like they can afford to have a release like this, and then make adjustments to focus more so on volume. The profits will always be there though. Either way, very impressive on Apple's end.

And as it turns out, Apple has both market share and profits.

Their market share may appear small as an overall percentage, but it’s an impressive number nevertheless in an absolute sense. More than enough to sustain its own thriving ecosystem.

I fail to see what Apple is doing wrong here.

 

[Abazigal]

So your saying he’s talking a load of BS then? Or he doesn’t know what he’s talking about? Or is a hypocrite?

And the US is one market, not global which is where it’s not selling massively, I’ve never seen one outside a shop! So if it’s making that much profit, take note of Steve Jobs words...

It just means that times change, and a smart man changes in keeping with those times. What Steve said back then may have made plenty of sense for Apple back then, but the Apple of today is a very different beast, and it shouldn’t be any surprise if what Steve said is no longer valid or relevant.

That said, the Apple of today doesn’t seem all that different from the Apple of yesteryear in terms of values and principles. They are still focused on making great products, and are rewarded for it with handsome profits. Why else would anyone buy an Apple product?

The only thing I would say has changed is Apple’s chosen area of focus. They have clearly moved on from Macs to smartphones and wearables and tablets. And as with any pivot, there will always be winners and losers.

The losers of course are the people holding out for products which Apple no longer has any intention of updating. The winners would be those for whom stuff like the iPad Pro, Apple Pencil, Apple Watch and Airpods are a perfect fit, serving these users in ways that the Macs of old never could.

Times change, people change in keeping with the times and and that’s just the way she goes.

 

[Act3]

the more I think about this chart, the more I think it is useless information. When was the S9 released and what does that quarter chart look like? Let's see this quarter's chart to compare with Q4 of 2017. lets compare on an even playing field.

 

[laz232]

"Karn is a Research Analyst with Counterpoint Technology Market Research, based in Gurgaon. Karn has 3+ years of experience in mobile device ecosystem. He has done graduation in Electronics and Communication from Punjab Technical University."

Well, I'm sure CNN would regard him as a senior analyst.
Macrumours - please stop posting this clickbait.

 

[Michael Scrip]

"Karn is a Research Analyst with Counterpoint Technology Market Research, based in Gurgaon. Karn has 3+ years of experience in mobile device ecosystem. He has done graduation in Electronics and Communication from Punjab Technical University."

Well, I'm sure CNN would regard him as a senior analyst.

Macrumours - please stop posting this clickbait.

This is exactly why they post it... it's an easy way to generate 300+ comments and 11,000+ views!

Meanwhile... "normal" stories about MacOS betas only get a fraction of that...

 

[Luis Ortega]

This is just insane, 8 out of 10 are Apple devices ^^

Lol...It just goes to prove that they are insanely overpriced.

 

[Val-kyrie]

Apple beat their guidance in Q1, so iPhone X sales could well have exceeded their forecasts. If they miss their Q2 numbers, maybe rumors of poorly selling iPhone X could be valid.

But if when Apple reports in a couple weeks, they make their numbers, it will be all the proof we need that the rumored OLED production cut was evidence of nothing more than the typical Q1–>Q2 demand-based production cut we’ve seen for many, many years. And maybe someday people will actually believe Cook regarding trying to derive meaning from random supplier reports.

I will be listening but until and unless Apple releases actual numbers, then supplier information is all we know. Despite Tim Cook's candy coated comments, there is yet another report that Samsung had more smart phone activations in Q1 2018 than did Apple. The one positive from the article was that Apple's user base is more loyal.

 

[I7guy]

I will be listening but until and unless Apple releases actual numbers, then supplier information is all we know. Despite Tim Cook's candy coated comments, there is yet another report that Samsung had more smart phone activations in Q1 2018 than did Apple. The one positive from the article was that Apple's user base is more loyal.

Did Samsung activate more economy models than Apple activated flagships?

 

[PickUrPoison]

I will be listening but until and unless Apple releases actual numbers, then supplier information is all we know. Despite Tim Cook's candy coated comments, there is yet another report that Samsung had more smart phone activations in Q1 2018 than did Apple. The one positive from the article was that Apple's user base is more loyal.

Apple does release actual numbers, every quarter. That’s also when they release the estimate for the next quarter.

Apple’s record Q1 earnings of $88.3 billion were up 12.7% over Q1 in the previous year. Their Q2 estimate of $60-62 billion is 13.4% to 17.2% higher than Q2 last year.

So Apple doesn’t think they will be having a bad quarter, despite the doom and gloom of those who make their living by guessing about Apple’s sales. In fact, Apple expects an excellent quarter.

We’ll have to wait 12 more days to find out who’s right. My money’s on Apple.