If the latest data from research analytics firm Strategy Analytics is anything to go by, Apple captured a record 91% of the total profit generated by the worldwide smartphone market in the third quarter of 2016.
In numbers term, Apple took home almost $8.5 billion of the total $9 billion profit generated by the smartphone industry in the previous quarter. And this is despite iPhone sales slowing down greatly in the previous quarter, with the iPhone 7 launch only barely affecting the numbers since it went on sale towards the very end of the quarter.
Linda Sui, Director at Strategy Analytics, said, “We estimate the global smartphone industry realized total operating profits of US$9.4 billion during Q3 2016. Apple dominated and captured a record 91 percent share of all smartphone profits worldwide. Apple’s ability to maximize pricing and minimize production cost is hugely impressive and the iPhone continues to generate monster profits. Huawei, Vivo and OPPO are the next three most profitable smartphone vendors globally this quarter, but they are still a long way behind Apple.”
Samsung was nowhere to be found in the list thanks to the Galaxy Note 7 fiasco that has already cost the company more than $5 billion. Samsung’s loss led to its Chinese rivals Huawei, Vivo, and Oppo grabbing the second, third, and fourth spot respectively in terms of profit share in the smartphone market. However, compared to Apple, these companies took home a measly $200 million in operating profit. Others like Lenovo/Motorola, OnePlus, Xiaomi, and LeEco had to share the remaining $200 million among them in profits.
The above rankings of OEMs by profit for the third quarter is more of an exception rather than the norm. Samsung is likely to be back in the list with a strong showing of its flagship Galaxy S7 handset this holiday season.[Via Strategy Analytics]