Cai Lian News Agency, February 16 (Editor Zhao Hao) Research institution Counterpoint recently released a report showing that in the fourth quarter of last year, the global smartphone cooling environment significantly, Apple with better than peers to cope with the ability to monopolize 85% of the overall market.
According to the report, in the fourth quarter of 2022, global smartphone shipments recorded 303.9 million units, down 18% year-on-year and the worst fourth quarter since 2013. For the full year, global shipments in 2022 recorded 1.2 billion units, the lowest level since 2013.
Counterpoint senior analysts explained that the Russia-Ukraine conflict, inflationary pressures, and economic uncertainty have sluggish consumer sentiment and reduced the frequency of their mobile phone purchases.
This trend continued into the fourth quarter of last year, when the cost-of-living crisis, labor market shortages and declining consumer purchasing power led to double-digit declines in shipments from the world's top five mobile phone manufacturers.
Apple alone accounts for 85% of global mobile phone profits
In addition, the total revenue and total profit of the global mobile phone market also declined last year. Among them, Apple stands out, although many of the company's data last year were not as good as in 2021, but its ability to cope with macro headwinds is significantly stronger than that of its peers.
The Counterpoint report pointed out that Apple's shipments, revenue and profit in the global mobile phone market in 2022 recorded the highest level in history: the company's shipments and revenue accounted for 18% and 48% of the share, respectively, and in terms of profit, Apple alone accounted for 85% of the profit of the global mobile phone market.
The report also pointed out that if Apple can ship more high-end models in the fourth quarter, it will have a greater profit lead over peers.
Jeff Fieldhack, director of research, commented that in this year of economic and geopolitical turmoil, Apple has successfully solved the capacity problem. The iPhone Pro series continues to perform well, allowing the company to continue to benefit from the high-end market.
The iPhone 14 pro max hardware cost only 3,000 pieces
According to another latest report from Counterpoin, you can see why Apple can get such high mobile phone profits.
According to the report, the 128GB storage capacity, the low-end iPhone 14 Pro Max hybrid bill of materials (BoM), costs about $464 (about 3,181 yuan), while the model sells for $1,099 in the U.S. market.
From the perspective of specific components, the cost of display screens and processors ranks among the top two.
According to the report, Apple's self-developed chip accounted for more than 22% of the total cost of the iPhone 14 Pro Max, of which the mobile phone processor upgraded from the A15 Bionic chip to the A16 Bionic chip increased the cost by about $11, while the camera increased by $6.30 compared with the iPhone 14 Pro Max. Correspondingly, the cost of cellular components has dropped significantly due to the popularity of 5G technology.
The huge difference between the cost of components and the final selling price makes Apple have a large profit margin in the high-end mobile phone market. Therefore, even after accounting for the cost of design, research and development, assembly, transportation, marketing, etc., Apple as a whole can still achieve a gross profit margin of up to 40% per year.
(Cai Lian News Agency Zhao Hao )