Apple reaps nearly all of the profits in the global smartphone market. A new study tells us that Apple accounted for almost all of the profits in the global smartphone market.
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In 2022, Apple’s operating profit share of the worldwide smartphone market peaked at 85%, with the company shipping 70 million iPhones in the fourth quarter.
Driven by sales of the iPhone 14 launched in September, Apple achieved its highest share of smartphone sales, revenue and operating profit in 2022 ever.
Although Apple’s shipments, revenue and operating profit declined year-over-year in the fourth quarter of 2022, the company still achieved 18% of sales, 48% of revenue and 85% of profit generated by the entire smartphone segment in 2022.
Apple shipped 70 million iPhones in the fourth quarter, up from 49.2 million in the third quarter but down from 81.5 million units in the fourth quarter of 2021. Manufacturing problems in China, not low demand led to fewer shipments.
According to the latest analysis from Counterpoint Research, the global smartphone market saw shipments decline 18% year-over-year in the fourth quarter of 2022, the lowest level for a holiday quarter since 2013. Shipments for the full year they fell to 1.2 billion units, a negative figure not always seen since 2013. However, shipments grew a minuscule 1% quarter-over-quarter to 303.9 million units in the last three months of 2022.
Research lead Jeff Fieldhack commented on Apple’s success in a market squeezed by external forces.
Having handled its production woes deftly, Apple was able to weather a year already marred by economic and geopolitical turmoil better than other major smartphone makers. Its iPhone Pro series has continued to perform well, and its share of smartphone shipments might have been even higher were it not for production issues caused by the COVID-19 outbreak at its Zhengzhou plant, which produces the vast majority of majority of Pro Series volumes. As a result, some Pro Series shipments were delayed until January.
Apple’s product line is entirely located in the premium segment of the market, which is less affected by economic and geopolitical uncertainties. In fact, since they last longer, many users prefer to buy premium devices.
