Two out of three high-end cell phones are from Apple, and that’s a problem for Android makers
The economy is governed by several strategies. Many companies choose to sell high margins and short and others choose to sell a lot even when the profit per unit is low. Apple is probably the brand (outside the luxury sector) that best exemplifies the first option, and this is reflected in the market share they have at the high end, generating the most money in profits.
It has been the consulting firm Counterpoint Research that has published a report in which we see that 62% of high-end cell phones sold in the second quarter of 2022 are from Apple.
As you can see below, this is quite a significant increase as compared to the same quarter last year. The change can be seen, above all, in the virtual disappearance of Huawei as a major brand in the high-end.
It is true that Samsung has dropped a few points (it is the only Android mobile in the top 5 sales), but the rest (Oppo, Xiaomi and Vivo) have remained almost unchanged. That is, Apple has absorbed almost all of Huawei’s sales, and is part of its main rival’s.
Many would say that high-end sales are not a priority for many manufacturers like Realme or Xiaomi, but the biggest profits come from high-end. Not in vain Apple keeps the vast majority of the profits that smartphones generate around the world. And even that’s not enough for the company, which is looking for a shift toward services to continue expanding its margins per iPhone sold.
All other brands have long crossed the red line of selling handsets for well over 1,000, but what they account for in the total units of those handsets is far less, and it doesn’t look like it’s going to happen anytime soon. Will change too.
Are foldable phones the answer?
Samsung is one of the brands struggling hardest to improve its profit margins, and foldables are an important part of that strategy. This year, perhaps the most relevant thing about these models will be the price reduction, which will bring them closer to the point where sales will start.
