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iPhone X pocketed 35% of total handset industry profits in Q4 2017

IANS  |  New Delhi 

As global handset profits dipped 1 per cent (year-on-year) in the fourth quarter of 2017, X alone generated 35 per cent of the total handset industry profits, helping the maker grow 1 per cent (YoY) in the same quarter, a new report said on Tuesday.

According to the latest research from Counterpoint's Q4 2017, the premium market did not grow as expected while remained the most profitable brand, capturing 86 per cent of the total handset market profits.

"grew 1 per cent (YoY) even with the X being available for only two months in Q4 2017. The X alone generated 21 per cent of total industry revenue and 35 per cent of total industry profits during the quarter," said in a statement.

"The share of iPhone X is likely to grow as it advances further into its life-cycle. Additionally, the longer shelf life of all iPhones ensured that Apple still has eight out of top 10 smartphones, including its three-year-old models, generating the most profits compared to current competing from other OEMs," Chauhan informed.

The global market has already reached its peak with longer replacement cycles and key OEMs are now under pressure to book profits.

"Chinese OEMs cumulative profits crossed $1.3 billion during Q4 2017. This was driven by the increased mix of mid to high-end In fact, the average selling price (ASP) of their flagship devices also increased YoY," added Associate

Key Chinese players like Huawei, OPPO and Vivo are now looking to scale up the price band, by leveraging their inhouse manufacturing capabilities and bringing innovation to their devices, he added.

iPhone X generated 5 times more profits than the combined profits of over 600 OEMs during Q4 2017.

Apple and flagship models lead in terms of profits as compared to other OEMs. was the leading brand among all the Chinese brands, with profit increasing 59 per cent (YoY).

"With an increased mix of flagship sales for key Chinese brands, we expect profit share of Chinese players to grow in the coming quarters," the report added.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 17 2018. 14:46 IST