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Apple Captures Record 91 Percent Share of Global Smartphone Profits in Q3 2016

by Linda Sui | Nov 22, 2016

According to the latest research from Strategy Analytics, global smartphone profits reached US$9 billion in total during the third quarter of 2016. Apple dominated and captured a record 91 percent share of all smartphone profits worldwide.

 

We estimate the global smartphone industry realized total operating profits of US$9.4 billion during Q3 2016. Apple dominated and captured a record 91 percent share of all smartphone profits worldwide. Apple’s ability to maximize pricing and minimize production cost is hugely impressive and the iPhone continues to generate monster profits. Huawei, Vivo and OPPO are the next three most profitable smartphone vendors globally this quarter, but they are still a long way behind Apple.

 

We estimate Huawei generated US$0.2 billion of smartphone operating profit worldwide in Q3 2016. 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. An efficient supply chain, sleek products and effective marketing have been among the main drivers of Huawei’s robust profitability. Vivo and OPPO followed in third and fourth place and each took 2 percent global profit share. Vivo and OPPO delivered relatively healthy profitability due to disciplined pricing and soaring shipments across Asia.

 

Three of the world’s top four most profitable smartphone vendors are currently Chinese. Huawei, Vivo and OPPO have not only improved their smartphone product lineups this year, they have also enhanced their operational abilities and kept a tight lid on expanding distribution costs.

Global Smartphone Operating Profit Share in Q3 2016 [1]

Global Smartphone Profit by Vendor

Operating Profit (US$, Billions)

Operating Profit Share (%)

Apple

$8.5

91.0%

Huawei

$0.2

2.4%

Vivo

$0.2

2.2%

OPPO

$0.2

2.2%

Others

$0.2

2.2%

Total

$9.4

100.0%



[1] Numbers are rounded. The data-table includes global smartphone hardware profit only. Profit is defined as realized operating profit.

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