According to the report of Counterpoint Research, Apple reached a new high in its profit share from global smartphone sales in 2022. The technology giant, which earned 85% of its operating profit and 48% of its operating income from smartphone sales throughout the year, celebrates the new peak of the iPhone in its 15th year.
According to Counterpoint Research, the global smartphone market experienced a significant decline in the fourth quarter of 2022, reaching 304 million shipments, down 18% compared to the same quarter of the previous year. In the full year 2022, shipments fell 12%, reaching 1.2 billion units, the lowest level since 2013. Global smartphone revenue also fell 9% to $409 billion, the lowest level since 2017.
However, Apple experienced a breakthrough in the market with the launch of the iPhone 14 series. It has replaced Samsung as the top smartphone player in Q4 of 2022.
Research Manager commenting on Apple’s performance Jeff Fieldhack“ Apple, which expertly manages production problems, has survived a year shadowed by economic and geopolitical turmoil better than other major smartphone players. The iPhone Pro series continued to perform well, and its share in iPhone shipments could have been even higher had it not been for the manufacturing issues caused by the COVID-19 outbreak at the Zhengzhou factory, which has a valuable place in Pro series production. As a result, some Pro series phones have been delayed to January” said.
In November, Apple warned that the flagship iPhone 14 Pro series was under-supplied as COVID-19-related restrictions in the “iPhone city” in China’s Zhengzhou province continued until the end of 2022. Despite supply problems, the iPhone maker was able to defend its high-margin profits.
It can be said that Apple’s success is due to the fact that its primary market, the premium segment, is less affected by the economic and geopolitical uncertainties of the year. Smartphone users’ preference for longer-lasting premium devices also coincides with Apple’s prestige for producing high-quality products. This trend has further enhanced Apple’s performance in the smartphone market and allowed the company to achieve its highest-ever share in shipping, revenue and operating profit in 2022.
In addition, Counterpoint Research predicts that the global smartphone market will remain under pressure until the end of the first half of 2023 before a recovery is expected to begin.
