In just two months, iPhone X accounts for 35% of the entire mobile phone industry's profits

According to the fourth quarter 2017 research report released by Counterpoint Research***, a research organization, global mobile phone profits fell by 1% in the quarter (October-December) because the high-end smartphone market did not grow as expected. Counterpoint believes that the global smartphone market has reached its peak, the user replacement cycle has become longer, and mainstream OEM smartphone manufacturers are facing profit pressure.

Regarding the iPhone, Counterpoint Research analyst Karn Chauhan highlighted the following points:

• Although global mobile phone profits fell by 1%, Apple's iPhone X, which was launched only two months ago in the fourth quarter of 2017, increased its profits by 1%.
• The key is that in just two months, the iPhone X alone accounted for 21% of the industry’s total revenue and 35% of the industry’s profits.
• As the life cycle of iPhone X is further extended, its share of revenue and profit is likely to increase.
• All of Apple's iPhone models have a longer 'shelf life', which means Apple still has 8 models on the market, including models from 3 years ago, but these models generate the highest profits for Apple compared to current competitor smartphones.

Regarding the performance of Chinese mobile phone brands, Tarun Pathak, deputy director of Counterpoint Research, emphasized the following points:

• In the fourth quarter of 2017, the cumulative profits of Chinese OEM manufacturers exceeded US$1.3 billion, mainly driven by the growth of mid-range and high-end smartphones.
• The average selling price (ASP) of flagship smartphone products is also increasing.
• Important Chinese manufacturers such as Huawei, OPPO and vivo are now starting to bring innovation to their own devices through their own internal manufacturing capabilities, thereby expanding the price range.

Market summary for the fourth quarter of 2017:

• Apple remains the most profitable brand, accounting for 86% of total mobile phone market profits.
• Further dividing profits by model, the top 10 models account for 90% of the total profits in the mobile phone industry.
• Apple and Samsung's flagship models lead other OEMs in terms of profits.
• The iPhone X alone accounted for 35% of the profits in the mobile phone industry. This is a significant milestone as the phone was only on the market for two months during Q4 2017.
• In Q4 2017, iPhone X’s profits were more than five times the total profits of more than 600 Android OEM manufacturers.
• Apple's older iPhone generations, the iPhone 7 and iPhone 6, are still more profitable than some of the latest Android flagships from major Chinese OEMs.
• Huawei was the leading Chinese brand, with profits growing 59%.
• As flagship sales of mainstream Chinese brands continue to increase, the profit share of Chinese mobile phones is expected to grow in the coming quarters.