Apple rides iPhone profits to become the most profitable global brand in Q4

Apple iPhone X generated 35% of the total handset industry profit in Q4 2017. In smartphone segment, Apple achieved 86% of global profits. Latest news on Apple iPhone X, its pricing and market control

US-based technology giant Apple remained the most profitable brand in the fourth quarter of 2017-17, capturing 86 per cent of total handset market profits, according to a report by Counterpoint Research.

According to the report, Apple’s anniversary-edition smartphone iPhoneX alone generated 35 per cent of the total handset industry profits. This is a significant landmark, as the model was available in the market for only two months during Q4 2017. The premium flagship smartphone with notch-based screen generated five times more profits than the combined profits of 600-plus Android original equipment manufacturers (OEMs) during Q4 2017.

Apple iPhones, including the current flagships like the iPhone 8 and iPhone 8 Plus, along with yesteryear’s flagships iPhone 7 and iPhone 7 Plus, led the list of top 10 smartphones that captured 90 per cent of the total handset profits. Other than iPhones, only Samsung’s Galaxy Note 8 and Galaxy S8 Plus managed to feature in the top 10, at the sixth and eighth positions, respectively.

The report highlights that the older-generation iPhones like the iPhone 7 and iPhone 6 generated more profits than some of the more recent Android flagships from key Chinese OEMs. Chinese electronics giant and the world’s third-largest smartphone manufacturer Huawei became the leading brand among all Chinese brands, with its profit increasing 59 per cent year-on-year.

After its international unveiling on September 12, 2017, the Apple iPhone X was launched in India and other international markets on November 3. The anniversary-edition smartphone was priced at a premium – Rs 89,000 for the base model with 64GB storage and Rs 1,02,000 for 256GB storage variant.

Why the Indian market's an Apple-polisher

Why the Indian market's an Apple-polisher

Apple has slashed rates of the higher end version of its iPhone 6s and 6s Plus by Rs 22,000 in India, as it prepares to begin sales of its latest iPhone 7 and 7 Plus from October 7. The move is aimed at tapping aspirational buyers, who might not want to cough up the full price for the newer model and increase market share.

“The price drop won’t move the needle much,” said Neil Shah, director at Counterpoint Research. “However, with the Samsung Galaxy Note 7 debacle, it gives Apple a window of opportunity to attract premium Samsung customers, with attractive offers on the iPhone 6s and 7. This could bump up Apple’s share in the premium smartphone market to above 60 per cent from 47 per cent currently.”

Samsung Galaxy Note 7 is facing a global recall due to faulty batteries that is a potential fire hazard.

Prices of the 128GB variants of the iPhone 6s and 6s Plus were dropped from Rs 82,000 and Rs 92,000 to Rs 60,000 and Rs 70,000, respectively. Appleusually drops the rates of older generation devices in order to appeal to buyers, who might not want to splurge on the latest devices.

The 16GB and 64GB variants of last year’s iPhone models have been discontinued, and the company has introduced a 32GB variant of both devices. The new base variant of the iPhone 6swill cost Rs 50,000, while that of the 6s Plus will cost Rs 60,000. It isn’t clear if Apple will continue to sell the older iPhone 6 variants in India.Read more.