![]() While Xiaomi has done very well in terms of shipments, its performance from a profit point of view has not been as strong. Huawei’s fall has been accompanied by the rise of other Chinese OEMs, particularly Xiaomi, OPPO and vivo, which were the biggest revenue generators respectively after Apple and Samsung in Q2 2021. In terms of profit, however, Samsung has consistently been the number two player for the past several quarters.ĭespite relative stability at the top, a major shift in recent quarters was caused by Huawei’s decline following the imposition of US sanctions against it. There have been two instances when Samsung has failed to generate the second-highest revenue share – Q4 2019 and Q2 2020, when Huawei reached the number two spot. Samsung, the biggest global smartphone vendor in terms of annual shipments, usuallyįollows Apple in revenue and profit share. Apple is likely to retain this edge, enabling it to continue charging premium prices for its handsets, thus maintaining high operating profit margins. While this has been the case for some time, it has become particularly pronounced with the stickiness of music, media, news, storage, etc. This is made possible by Apple’s significant control over both hardware and software, enabling a seamless shift of work on an app between multiple devices. ![]() The convenience with which one may shift between a Mac, iPad and an iPhone encourages users of one Apple device to stay within the Apple ecosystem by acquiring other of the brand’s devices. Apple also benefits from interoperability between its devices. While there was a significant jump in its shipment share, from 9% to 17% in the same period, the extent of its revenue share reflects the success of its first 5G-enabled iPhone series. ![]() While this performance shows the power of the Apple brand, it is still lower than the peak of Q4 2020 when its revenue share reached a staggering 50%, up from 28% in Q3 2020, and its profit share reached an unprecedented 86%, up from 51% in the previous quarter. In Q2 2021, it captured 75% of the overall handset market operating profit and 40% of the revenue despite contributing a relatively moderate 13% to global handset shipments. However, the picture from a revenue and operating profit point of view has stayed much more stable over the past several quarters.Īpple has been the biggest profit and revenue generator in the handset business. The dynamics of the top global handset OEMs keep changing from a shipment point of view, as we saw with Xiaomi becoming the second-highest selling smartphone brand globally in Q2 2021. ![]()
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