Global smartphone revenue fell 8% YoY and 15% QoQ to under $90B in Q2 2023; Apple had a record 45% share of global smartphone revenue and an 85% share of profit
- Apple led global smartphone revenues and operating profit with record June-quarter shares of 45% and 85% respectively.
This quarter extends that pattern as overall handset spending contracts. The key distinction is not simply weaker market revenue, but Apple reaching a new revenue-share high while retaining the same outsized share of industry profit.
First-order effects
Apple commands a larger share of the smartphone industry’s shrinking revenue pool and captures most operating profit, strengthening its financial position relative to handset rivals.
Android-focused manufacturers face a tougher near-term environment: the revenue decline is concentrated in a market where the remaining profit is heavily skewed toward Apple.
Second-order effects
Competitors have greater incentive to defend premium-device revenue and margins rather than pursue volume alone, since shipment scale has not translated into comparable industry profit.
Component suppliers and channel partners become more exposed to the product mix and sales performance of premium smartphones as value concentrates in fewer manufacturers.
Third-order effects
If this concentration persists, smartphones increasingly become a two-tier industry: Apple monetizes a premium installed base while much of the Android field competes over lower-margin volume.
The pattern reinforces the importance of profit share rather than shipment share as the measure of handset market power; later shipment recovery would not by itself reverse that structure.
The trend: The smartphone market is consolidating its economics around premium-device monetization, with industry profit becoming less representative of unit-market share.
@CounterPointTR ... continue to rake in 💰in the smartphone market!! Q2'23 Smartphone Market climbed to $90 Billion in revenues. 💵 Apple captured almost half of global smartphone revenues 💵 Apple captured almost three fourths of smartphone profits. $AAPL https://www.counterpointre…
📱#Apple captured record Jun-quarter shares of global smartphone rev. & profit in Q2 2023 📱Global #revenues ↓ by 8% YoY to well under $90 bn due to shipment decline & seasonal ASP stagnation 📱Operating #profit also fell, to below $13 billion, declining by 3% YoY #AppleEarnings [im…
One way of looking at @Apple's dominance in the smartphone market from our latest Q2 2023 data ✅Volume share - 17% ✅Revenue share - 45% ✅ Profit share - 85% More here from @HSinghWalia and team at @CounterPointTR https://www.counterpointresearch.com/ ... [image]
Also notable from the results is that Apple appears to have outperformed the China smartphone market by a significant amount. Counterpoint had overall China phone sales down 8% in the calendar second quarter, and Cook said iPhone was up “double digits” in China.
The iPhone took a record *85%* of global smartphone profit share in the June quarter, per @CounterPointTR Also took 45% of all smartphone revenue. More on the quarter here in the @FT: https://enterprise-sharing.ft.com/ ... cc @Techmeme [image]
India Smrtph Market down 3% in Apr-June'23 with 34 Mn unit shipments. ASP up 13% YoY, US$241 in 2Q23. <US$200 11% YoY to 65% share now. mid-range US$200<US$400 flat at 22% share, mid-prem US$400<US600 up 34% at 5% share Prem US$600+ up 75% at 9% share. https://www.idc.com/...