Apple Earns Record Breaking Profit Share From Smartphones Amid Industry Downturn

Apple has often been exceptionally resistant to downturns that are being experienced by the wider industry. Global smartphone operating profits plunged by 3% year over year, and 27% quarter over quarter to dip below the $13 billion mark. Revenues have also dipped by 8% year over year to around $90 billion, which also represents a 15% quarterly decline.

Apple itself saw a 3% year over year decrease in smartphone shipments, as well as a 2% dip in revenue. In spite of the fact that this is the case, the tech juggernaut’s share of global revenues reached 45%. With all of that having been said and now out of the way, it is important to note that this is a record breaking share for Apple in the June quarter, since it is a 3% increase since last year.

As for the company’s operating profits, they also broke a record by reaching 85% of all profits earned by this industry. It currently has a 73% lead over Samsung in profit share with all things having been considered and taken into account, which clearly indicates that Apple’s dominance in this arena does not seem like it will be going away anytime soon.

One contributing factor might be that the overall smartphone markets saw shipments go down by 9%, yet Apple’s decrease was just a third of that. Apple’s resilience might prove vital because of the fact that this is the sort of thing that could potentially end up giving it an even bigger lead over its competitors, one that would very quickly start to seem unassailable.

However, the company is still experiencing some strife due to the economic conditions taking the world by storm. Apple relies on its shipment share as a significant source of its profits, but this saw a 4% decrease year over year. While Apple might be weathering the storm better than some other companies, it is still not posting the same level of profits that it used to be in the past. It will be interesting to see what the industry looks like next year based on the current trends.

Read next: Microsoft Edge Reaches 10.75% Market Share, But Its Still Struggling Against Chrome
Previous Post Next Post