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Report: Brands not called Apple or Samsung are fighting for scraps
- Counterpoint Research has posted its Q1 2023 global smartphone report.
- The report found that Apple and Samsung accounted for 96% of operating profits.
- That leaves just 4% for brands like Xiaomi, OPPO, vivo, and others.
With a few exceptions, Apple and Samsung tend to occupy the top two slots every quarter when it comes to global smartphone market share. Now, a new market share report has highlighted their utter dominance when it comes to actually making money.
Counterpoint Research posted its Q1 2023 smartphone market share report, finding that Samsung was number one with ~22% of the global market. Meanwhile, Apple was nipping at the Korean brand’s heels, accounting for ~21% of smartphones shipped. Xiaomi rounded out the top three with an ~11% share.
OPPO and vivo completed the top five, accounting for ~10% and ~7% of the market respectively. However, things get pretty interesting when we look at the manufacturers making the most money.
Counterpoint reports that Apple and Samsung together accounted for 96% of global smartphone operating profits, with Apple accounting for the lion’s share (just over 80%).
The tracking firm noted that Samsung’s average selling price (ASP) for the quarter was $340, representing a 17% yearly increase. The company didn’t dish out an ASP for Apple, but none of the most recent iPhones have a recommended price under $800.
Either way, Apple and Samsung’s stranglehold on profits comes despite brands like Xiaomi stepping up their selling prices in recent years.
Would you buy a premium phone from a brand not called Apple or Samsung?
For example, the company recently launched the €1,300 (~$1,435) Xiaomi 13 Pro flagship phone, while the Xiaomi 13 Ultra is expected to breach this mark when it launches globally in the coming months. Even the firm’s mid-range Redmi Note 12 series now has a device that starts at €500 (~$552). Either way, Xiaomi achieved a “slight” increase in ASP for the quarter.
Xiaomi isn’t the only manufacturer either increasing its prices or launching more premium models, as the likes of OPPO and vivo are also taking this route with some devices. Either way, don’t be surprised to see higher price tags and more premium phones in the future as more brands emphasize overall profitability over shipment volume. This isn’t a surprise either given declining smartphone sales in the last year.