This was echoed by an International Monetary Fund (IMF) report published on Tuesday (18 April), which noted that\u00a0despite smartphone sales totalling 1.5 billion units last year, shipments declined for the first time on record.<\/p>\n
The demand, which has “created highly complex and evolving supply chains across Asia,” is highly cyclical and tied to the release dates of new models such as iPhones, the fund said.<\/p>\n
“Thus, production and trade in several Asian countries have become highly correlated, shaping a new tech cycle, which differs from the earlier tech cycle associated with personal computers,\u201d the IMF said.<\/p>\n
That doesn’t mean that there aren’t some notable winners in the smartphone market, said Counterpoint\u00a0research analyst, Karn Chauhan.<\/p>\n
“Global handset profits declined 1% YoY, but Apple grew 1% YoY even with the iPhone X being available for only two months in Q4 2017.<\/p>\n
“The iPhone X alone generated 21% of total industry revenue and 35% of total industry profits during the quarter and its share is likely to grow as it advances further into its life cycle.<\/p>\n
“Additionally, the longer shelf life of all iPhones ensured that Apple still has eight out of top ten smartphones, including its three-year-old models, generating the most profits compared to current competing smartphones from other OEMs.\u201d<\/p>\n
Most profitable<\/strong><\/p>\n Apple remained the most profitable brand,\u00a0capturing 86%\u00a0of the total handset market profits.\u00a0Further splitting profits by model, the\u00a0top 10 models\u00a0captured\u00a090%\u00a0of the total handset profits.<\/p>\n Notably the iPhone X alone\u00a0generated 35%\u00a0of the total handset industry profits – a significant landmark, as the model was available in the market for only two months during Q4 2017.<\/p>\n Apple\u2019s older generation iPhones, iPhone 7 and iPhone 6 also still generate more profit than some of the more recent Android flagships from key Chinese manufacturers.<\/p>\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/04\/Counterpoint.jpg\")
<\/a><\/p>\n