Apple collects nearly all of the profit in the worldwide smartphone market

iPhone 14

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Pushed by gross sales of the iPhone 14 launched in September, Apple has achieved its highest-ever world smartphone cargo, income, and working revenue share in 2022.

Though Apple’s shipments, income, and working income declined year-over-year in quarter 4 of 2022, it nonetheless captured 18% of cargo share, 48% of the income of {the marketplace}, and 85% of the revenue generated by the section for the yr.

The corporate shipped 70 million iPhones within the fourth quarter, up from 49.2 million in quarter three however down from 81.5 million items in quarter 4 of 2021. Apple’s manufacturing points in China and never demand are the culprits for the decrease cargo numbers.

In response to the latest analysis from Counterpoint Analysis, the worldwide smartphone market noticed an 18% year-over-year decline in shipments in quarter 4 of 2022, the bottom degree for a vacation quarter since 2013. Shipments for your entire yr declined to 1.2 billion items, additionally the weakest since 2013.

World smartphone shipments in 2022. Supply: Counterpoint Analysis

Nonetheless, shipments grew by a minuscule 1% quarter-over-quarter to 303.9 million items.

Analysis Director Jeff Fieldhack commented on Apple’s success in a market crushed by exterior forces.

“Having proficiently managed its manufacturing issues, Apple was in a position to climate a yr already marred by financial and geopolitical turmoil higher than different main smartphone gamers,” Fieldhack stated. “Its iPhone Professional collection continued performing nicely and its share of iPhone shipments might have been even greater if not for the manufacturing points brought on by the COVID-19 breakout on the Zhengzhou manufacturing facility, which produces the overwhelming majority of Professional collection volumes. In consequence, some Professional collection volumes bought pushed to January.”

Apple’s product line is totally located within the premium section of the market, which was much less affected by financial and geopolitical uncertainties. As a result of they final a very long time, many smartphone customers have been preferring to buy premium units.

Apple received the highest spot in 2022. Supply: Counterpoint Analysis

In the meantime, within the first quarter of 2023, Apple reported $117.15 billion in income, a decline from $123.9 billion in quarter considered one of 2022. The iPhone introduced in $65.78 billion in income for the quarter, down from the $71.6 billion within the year-ago quarter.

Lower than a decade in the past, Apple collected extra revenue from the smartphone market than was strictly generated in complete, if the losses that almost all Android producers had been seeing was integrated into the calculation.