Apple's iPhones are surely everyone's object of desire, and that is reflecting in the bottom line, as well. So much so, even top-selling Chinese phone brands are said to be having a re-look at their business strategy of selling feature-packed smartphones at competitive prices.
The reason is not far to seek. Since its launch at the end of 2020, the iPhone 12, Apple's latest iteration of its flagship smartphone, has been a runaway success. In the January to March quarter of 2021, the various sub-models of the iPhone 12 were so pervasive that they took in as much as one-third of all global phone sales revenues. This, even as global smartphone sales crossed the $100 billion mark.
According to Counterpoint Research's Global Handset Tracker, Apple's iPhone models dominated volumes as well as value in the first three months of this year. Between the four sub-models of its latest iPhone 12 launch (iPhone 12, iPhone 12 Mini, iPhone 12 Pro & iPhone 12 Pro Max), along with iPhone SE 2020 (the "budget" model of iPhone) and last year's iPhone 11, the company took in 38 per cent of all the revenue made in phone sales around the world!
And it's not just its premium pricing that has helped Apple dominate the phone world. Even in sheer numbers, the brand came tops, with 14 per cent of the market. The next brand to come anywhere near is Redmi with 4 per cent, followed by Samsung with 3 per cent.
"The importance of the premium segment in terms of revenue contribution is one of the reasons many Chinese (brands) like Oppo, Vivo and Xiaomi are eyeing it," said Counterpoint research analyst Varun Mishra in a blog post. "Entering the premium segment also unlocks access to consumers who potentially have a higher lifetime value."
The top ten highest revenue grossing models captured nearly 46 per cent of the global smartphone revenues, while the top ten highest selling models captured only 21 per cent of the volumes. This indicates the advantages of being present in the premium segment, where you get to earn more even when your numbers are less. For example, in Q1 of 2021, premium smartphones (costing roughly more than Rs 28,000) took in 65 per cent of all the money earned in mobile phone sales, even if their numbers were less. Therein lies the lucre.
