According to a report by Counterpoint Research, Apple sees a new high in its profits from global smartphone sales in 2022. The tech giant collected 85% of operating profit and 48% of revenue from smartphone sales during the year, setting new highs for the company in the 15 years since the iPhone has been around.
According to Counterpoint Research, the global smartphone market experienced a decline in Q4 2022, reaching 304 million units shipped, a decline of 18% year-on-year. Despite the decline, shipments rose 1% during the quarter, totaling 303.9 million units. Full-year 2022 shipments are expected to decline 12 percent, to the lowest level since 2013 at 1.2 billion units. Global smartphone revenue also fell 9% to $409 billion, the lowest since 2017.
However, Apple saw a breakthrough in the market as it replaced Samsung as the top smartphone player in Q4 2022 driven by the launch of the iPhone 14 series.
Commenting on Apple’s performance, research director Jeff Feldeck said:
“Having masterfully managed its production issues, Apple managed to weather the economic and geopolitical turmoil a year ago better than other major smartphone players. Its iPhone Pro series performed well. The performance continued and iPhone shipments could have been even higher if not for production issues caused by the COVID-19 outbreak at the Zhejiang factory, which produces the majority of the Pro series volume. As a result, some Pro Series volumes were pushed to January.
Back in November, Apple had already warned of low supply of its flagship iPhone 14 Pro series, due to COVID-19-related restrictions in China’s “iPhone City” in Zhengzhou district until the end of 2022. stay Despite the supply issues, the iPhone-maker still managed to maintain its high-margin profits.
Apple’s success can be attributed to the premium segment, its core market, being less affected by the economic and geopolitical uncertainties of the year. Smartphone users’ preference for longer-lasting premium devices is also in line with Apple’s reputation for producing high-quality products. This trend has further boosted Apple’s performance in the smartphone market, allowing the company to achieve its highest-ever share in shipments, revenue, and operating profit in 2022.
Counterpoint Research further 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.
