Apple Accounts for 75% of Global Mobile Phone Operating Profit in Q2

Trends in global market share of major handset manufacturers. (From top) Based on shipment volume, revenue, and operating profit.

[Asia Economy Reporter Seulgina Jo] Apple recorded the highest profit in the global mobile phone market in the second quarter of this year. Although Apple's market share based on shipment volume was only 13%, its operating profit accounted for a whopping 75%.

Counterpoint Research announced on the 14th (local time) that Apple demonstrated the power of its brand by accounting for 40% of global handset (mobile phone) market revenue and 75% of operating profit in the second quarter.

This is the result of the special demand for Apple's first 5G smartphone, the 'iPhone 12,' released last year, continuing into the first half of this year. Although slightly lower compared to the peak in the fourth quarter of 2020 (50% revenue share, 86% operating profit share), it remains at a high level. The cumulative sales volume of the iPhone 12 series surpassed 100 million units as of last April. Apple's average selling price (ASP) is also on the rise. Recently, the iPhone 13 series was also released.

Samsung Electronics ranks first in annual shipment volume but lags behind Apple in terms of revenue and operating profit shares. The revenue share gap is 25 percentage points, and the operating profit share gap is 62 percentage points. Counterpoint Research stated, "In the fourth quarter of 2019 and the second quarter of 2020, Samsung Electronics was pushed behind Huawei and failed to secure second place in revenue." However, Huawei has recently been hit hard in its mobile phone business due to sanctions imposed by the U.S. government.

Among the manufacturers benefiting from Huawei's decline, China's Xiaomi has grown rapidly enough to threaten Samsung Electronics in terms of shipment volume. However, Counterpoint Research added that Xiaomi is still underperforming in terms of operating profit. While Xiaomi has focused on shipment volume competition so far, the next goal is expected to be increasing ASP to improve profitability. Xiaomi has also been strengthening its premium lineup by recently launching high-priced foldable smartphones such as the Mi Mix Fold.

Counterpoint Research said, "In terms of shipment performance, Xiaomi lags relatively behind Samsung Electronics," and added, "Chinese manufacturers such as Xiaomi, Oppo, and Vivo need to strive to increase ASP to improve margins in the long term."