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Smartphone market Q3 2019, profits fall but Apple has 2/3 of the cake

The smartphone market has seen decrease profits by 11 percentage points on an annual basis in the third quarter of 2019: to reveal it is Counterpoint, which in its latest report (link in FONTE) analyzes the entire sector focusing on a parameter that does not necessarily follow the progress of shipments. According to IDC, in fact, Q3 was positive, albeit slightly, with a + 0.8% compared to the same period of the previous year, but this was clearly not enough to allow producers to increase profits.

The following were influences many mid-range smartphones placed on the market, as well as the decline in revenue recorded by several first-tier producers. Consider that in the top 10, only Samsung and Huawei reported a "+" sign on an annual basis. And the premium segment to allow companies to flesh out profits, a segment that was marked in this quarter by a low propensity of users to replace the smartphone with a new model. Premium smartphone market which, we remember, sees Apple as the undisputed protagonist with 52% of shares, followed by Samsung (25%) and Huawei (12%).

  • Is always Apple to command the ranking of profits: 66% of the total for the Cupertino company, and 32% for revenue. This is due to its massive presence in markets such as the United States, Europe and Japan, and a further increase is expected for the fourth quarter thanks to sales of iPhone 11, 11 Pro and Pro Max during the holiday season.
  • Samsung it is second, even if very detached from Apple, with the 17% of profits going to Seoul. In this case, the sales of the Galaxy S10 and its Plus and e variants (but also of the 5G model), as well as of different devices belonging to an increasingly medium-high range Galaxy A range have had an impact.
  • Huawei before Oppo, I live is Xiaomi in an all-Chinese (commercial) struggle.

And for the future? Certainly the advent of 5G and, above all, the increasingly widespread distribution of smartphones compatible with the new generation networks will only contribute positively to the coffers of top producers. With 5G will increase the average sales price (ASP) and, consequently, revenue will grow. Considering a simultaneous increase in component costs, it is not certain, however, that profits can grow proportionately.

Credits opening image: Pixabay