According to Strategy Analytics, Apple made 91% of the total profits of the smartphone industry ($9 billion) in Q3 2016. Linda Sui, Director at Strategy Analytics, said, “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.”
Neil Mawston, Executive Director at Strategy Analytics, added, “Huawei [took] 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 delivered relatively healthy profitability due to disciplined pricing and soaring shipments across Asia.”
Analyst Comment
Of course, the obvious missing name from this list is Samsung, which had a horrible Q3 from a profitability point of view because of the Note recall problem. The “others” figure also makes you realise how little chance there is of making profits if you are not one of the top four or five brands. (BR)
