Smartphone manufacturing is the most competitive market in the consumer electronics segment. Consumers are now holding their phones for longer before the next upgrade, this has led to the decline of handset profits globally by 11% YoY. In Q3 2019, the handset profits stood at USD 12 billion globally, with Apple minting more profit than any other manufacturer. Samsung and Huawei, both companies managed to increase their revenue on an annual basis. This is thanks to Samsung’s Galaxy Note series and A-series that have been received well by the audience and Huawei, despite being banned in the USA did well to increase in revenue, all thanks to strong imaging technology in the P30 Pro and Mate 30 series.
Apple holds 66% of industry profits and 32% of the overall handset revenue. This is thanks to the loyal fan base of the iPhone. This year as well the iPhone 11 series has been appreciated by consumers and can see a surge during the holiday season which will improve Apple’s revenue. Samsung is a distant second, taking 17% of the overall handset Industry profits. The increased mix of Galaxy A Series along with the positive start of the Galaxy Note 10 Series was the key reason for the growth.
On the other hand, the Chinese smartphone manufacturers are playing at the entry-level and mid-tier segment. Companies like Xiaomi, OPPO, vivo, OnePlus, Realme and others are offering flagship hardware at a mid-segment cost. OPPO, vivo, and Xiaomi are other three manufacturers that are positioned fourth, fifth and sixth respectively.