Apple will have a merry Christmas. What’s special this time? Well, if IDC’s latest quarterly report is to be believed, the Cupertino giant is heading the global wearable market. Moreover, another report from Counterpoint Research has said that Apple is still dominating the global handset market as it has captured 66% of industry profits and 32% of the overall handset revenue.
According to the report, “The loyal premium user base in the major markets like the USA, EU, and Japan is one of the reasons that Apple can still operate at a profit level that its competitors can only wish for.” Apart from Apple, no other brand comes close to Apple’s profitability. Going by the specifics of Q1 2018-Q3 2019 data, the report foretells that the company’s profitability will only grow.
“Now with a strong service strategy, Apple’s overall ecosystem is strong enough to guarantee it a steady inflow of revenue in the coming years. In the immediate future, we believe that Apple’s profit for the holiday season will increase with the new line up of iPhones gaining good traction,” said the report.
Samsung is the second firm on Counterpoint Research’s list but it has a broad margin among the two. It has 17% of the overall handset Industry profits, all thanks to the mid-range Galaxy A series and a positive start of the Galaxy Note 10 series. After Samsung, Chinese brands like Huawei, Oppo, Vivo, and Xiaomi work on low-profit margins but the report says that they have done better than last year.
Nevertheless, the Chinese OEMs face a bit of difficulty in increasing the selling price of their smartphones as there’s a delay in the upgrade cycle by consumers and Apple is lowering the pricing on some key stock-keeping units (SKUs).