Two out of three high-end cell phones are from Apple, and that’s a problem for Android manufacturers
The economy is driven by many strategies. Many companies choose to have high margins and lower sales and others choose to sell a lot even if the profit per unit drops. Apple is possibly the brand (outside the luxury sector) that best exemplifies the first option, and this is demonstrated in the market share they have in the high end, which generates the most money in profits.
It has been the consulting firm Counterpoint Research that has published a report in which we see how 62% of high-end cell phones sold in the second quarter of 2022 are from Apple.
As you can see below, that is quite a noticeable increase over 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 couple of points (it has the only Android mobile in the Top 5 sales), but the rest (OPPO, Xiaomi and Vivo) have remained virtually unchanged. That is, Apple has absorbed almost all of Huawei’s sales, and part of those of its main rival.
Many will say that high-end sales are not the priority for many manufacturers, such as Realme or Xiaomi itself, but the biggest profits come from the high-end. Not in vain Apple keeps the vast majority of the profits that smartphones generate worldwide. And even that is not enough for the company, which is looking for a shift towards services to continue to expand its margin per iPhone sold.
All other brands have long since passed the red line of selling handsets for more than €1,000, but what those handsets account for in the overall units they sell is very little, and it doesn’t look like that will change anytime soon.
Are foldable phones the answer?
Samsung is one of the brands that is fighting hardest to improve its profit margin, and foldables are a crucial part of that strategy. This year, perhaps the most relevant thing about these models will be a price reduction, which will bring them closer to a point where sales will take off.