Nearly half of smartphone revenue goes to Apple despite 23% shipment share

In the second quarter, Apple claimed a commanding 49% share of global smartphone revenue, a record high that surpassed its 44% figure from a year earlier, despite only commanding 23% of the total shipments, according to preliminary data from Counterpoint Research. The key to Apple's success lay in the higher profits generated per device compared to its competitors, as highlighted by the company's iPhone revenue, which soared by 22% year-over-year in the reported quarter, marking the most significant growth among the top five brands.

The surge in Apple's revenue can be attributed to both an increase in shipments and a shift towards more expensive sales mix. Counterpoint Research estimated that Apple's device shipments grew by 13% from the previous year, while their average selling price escalated by 8% to reach $946. This growth trend is largely credited to the sustained demand for Apple's iPhone 17 lineup, specifically the base iPhone 17 and the premium iPhone 17 Pro Max models.

Counterpoint pointed out that Apple's success was not solely due to price hikes, as some competitors resorted to. Instead, the company managed to maintain a focus on premium devices, avoiding the need for steep price increases. The robust demand for the iPhone 17 and iPhone 17 Pro Max played a crucial role in keeping Apple's product mix centered around higher-margin devices, contributing significantly to the company's impressive revenue growth.