Apple is generating the highest revenue from smartphone industry through its iPhones

In the era of the digital world, smartphones are the important gadgets that users rely on for their daily tasks. From purchasing trending jackets to looking for the best weekend spot, smartphones help in all. We rely on almost every task on smartphones and companies are availing this opportunity by introducing a variety of unique services.

In the industry of smartphones, Apple is generating a total of 66% industry profit and around 32% of overall revenue through its series of handsets.

Recently, a report from Counterpoint Technology Market Research surfaced and Apple took the first place with the highest-earning industry profit and overall revenue and Samsung was placed at second with 17% of overall industry profits.

According to the report from CTMR, Apple is expected to generate stable revenue from its iPhone series in the coming years.

Apple has its own loyal premium user base in the markets of the USA, EU, and Japan and this is one of the major reasons behind Apple generating such a huge amount of revenue that its competitors can only wish for.

With loyal user base, Apple has a very strong enough service strategy that can guarantee a steady inflow of revenue for Apple’s overall ecosystem in the coming years and with the introduction of new series of iPhones gaining more and more attention, Apple is expected to see an increase in its profit for the holiday season.

According to the reports, within a year the Global handset has seen a decline of 11% in its profit resulting in only $12 billion profit in the third quarter of 2019. We think the reason behind such downfall is due to an increase in the launch of mid-tier products and a fall in revenues for key OEMs.

On an annual basis, only Huawei and Samsung managed to increase its overall revenue and a major factor behind it is the replacement cycle for premium smartphones.

The introduction of Chinese brands is also providing low-profit smartphones but these brands operate only outside China and into only higher-tier price brands the reason why they don’t help much in generating revenue.

A variety of smartphone brands are looking for some new ways to monetize their user base by launching a variety of financial services for its users which include IoT products and much more.

The increase of new products and services is making it more difficult for brands to produce low-profit margin products and to increase ASPs due to longer holding periods and lower price offerings by Apple.

According to the report from CounterPoint, devices operating in 5G are expected to help in increasing revenue. Devices from brands like Huawei, Oppo, Vivo, and Xiaomi are expected to see an increase in its profit with the launch of some new technology upgrades in its products.

With the introduction of new technology and new products, we are still pretty unsure to know as BOMs will rise too along with an increase in the revenue.

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