Apple Inc. (NASDAQ:AAPL) Record Profits Affirms Dominance On smartphone Sales, But For How Long?

Apple Inc. (NASDAQ:AAPL) record smartphone profits in the third quarter further affirms its dominance in the highly competitive business.  Recent research finding indicates that the iPhone maker pocketed a whopping 91% of the global smartphone profits, even on seeing its market share come under pressure from Chinese manufacturers.

Apple Record Profits

Strategy Analysis believes Apple pocketed as much as $8.5 billion in profits in the quarter compared to $9.4 billion realized in the entire industry. Huawei, which has been expanding aggressively in Europe and North America, came second, having accounted for 2.4% of the total profits. Vivo and Oppo remained tied at third having accounted 2.2% of the overall cake.

“Apple dominated and captured a record 91 percent share of all smartphone profits worldwide. Apple’s ability to maximize pricing and minimize production cost is hugely impressive and the iPhone continues to generate monster profits,” said Linda Sui, director at Strategy Analytics.

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Apple record profits, on the other hand, came at the back of Samsung experiencing one of its worst runs, having been forced to recall its flagship product Galaxy S7 over battery issues.   Chinese companies taking three of the top four spots should be a worry for Apple ad Samsung that have for years wooed consumers with their devices.

 Chinese Handset Makers Threat

Chinese companies are increasingly giving consumers a reason to buy their devices having found a way to battle the big boys on pricing and device features. Away from brand loyalty, Apple and Samsung could start feeling the pinch as Chinese manufacturers push for market share on the global scene.

Apple topping the charts on overall profits does not in way cover up the fact that its iPhone product line is under immense pressure. Declining sales in China is a point of concern given that the marketplace accounts for a huge chunk of the company’s overall earnings.

Apple record on smartphone profits should thus be a wake-up call that there is no time for laxity as Chinese handset makers look to affirm their position on the global scene.

Apple stock was up by 0.06% in Tuesday trading session closing the day at a high of $111.80 a share.

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