Apple Park

Market research firm Counterpoint Research is out with a new report that says that despite changing market conditions, Apple continues to dominate the global handset market profit share, with 66% of the industry’s profits despite having only 32% of the overall market’s handset revenue.

Samsung is in second place, taking 17% of the overall handset industry profits. Counterpoint attributes this to the success of the Galaxy A series and a strong start to Galaxy Note 10 series devices.

Regarding, Apple, Counterpoint research analyst Karn Chauhan said that the company’s premium user base in the USA, EU and Japan allow it to maintain the huge profit share it commands. Chauhan also believes that emphasis on building up the services ecosystem around its device sales will continue to reap dividends:

Now with a strong service strategy, Apple’s overall ecosystem is strong enough to guarantee it a steady inflow of revenue in the coming years. In the immediate future, we believe that Apple’s profit for the holiday season will increase with the new line up of iPhones gaining good traction.

Chauhan expects 5G upgrades to be a big driver for handset churn in 2020, with revenue growth especially expected among Chinese handset makers, as China is aggressively building out 5G infrastructure.

Does Apple’s profit share of the handset market surprise you at how lopsided it is? Or does it make sense given the premium price for Apple’s handsets? Let me know in the comments.