According to research released by Strategy Analytics this week, global smartphone profits reached $9 billion in the third quarter of this year.
The lion’s share of that figure was brought in by none other than Apple. The Cupertino firm allegedly captured 91% of the operating profit share globally bringing in $8.5 billion in profits. This domination of the market is thanks to the firm’s ability to “maximise pricing and minimize production costs,” according to Strategy Analytics.
So while Apple dominates the market, who takes second place?
Your first guess might be Samsung but that would be incorrect. Huawei managed to take 2.4% of the global smartphone profit share bringing in $200 million in profits during the last quarter. Behind Huawei is Vivo and OPPO, two more Chinese brands which each enjoyed 2.2% of the profit market.
“Huawei captured 2 percent share of all smartphone profits, taking second spot overall, and becoming the world’s most profitable Android vendor for the first time ever,” Strategy Analytics executive director, Neil Mawston said.
While Apple is lauded for keeping production costs low, Huawei’s success this quarter is a result of an efficient supply chain, desirable products and great marketing according to Mawston.
“Vivo and OPPO delivered relatively healthy profitability due to disciplined pricing and soaring shipments across Asia,” Mawston added.
While Samsung is usually the biggest Android smartphone manufacturer it appears as if the Galaxy Note 7 recall impacted the South Korean manufacturers profits quite severely. “Samsung led the pack among all Android OEMs by volume and value, but [was] surpassed by Huawei in profitability due to Note 7 debacle,” Strategy Analytics says.[Source – Strategy Analytics]