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The iPhone accounted for a record 41% of smartphone revenue last quarter

Published: Jul 30, 2021, 4:59 AM

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The iPhone accounted for a record 41% of smartphone revenue last quarter

The smartphone market numbers are in. Several companies including Motorola and Xiaomi were winners on the shipment side, but new data reminds us once again that there’s more to the smartphone business than market share.

Apple's iPhone dominates when it comes to money

The total value of smartphones shipped in the second quarter reached $96 billion, an increase of 25% according to Counterpoint Research. It comes at a time when brands are facing supply issues, making the achievement all that more impressive.

Apple’s iPhone accounted for the lion’s share of revenue with a 41% slice. That’s a new record for the June quarter and up from 34% twelve months earlier. Compare to the first quarter, Apple’s share is down one percentage point.

Counterpoint Research attributes the iPhone’s continued success in recent months to the high demand for the iPhone 12 series and Apple’s careful supply chain management during the quarter.

While other smartphone brands have been impacted by the global chip shortages, Apple has remained largely unaffected. It warned of headwinds during the current quarter, but those are mainly impacting previous-gen iPhones with older chipsets.

In other words, unless something goes horribly wrong, Apple shouldn’t face any big iPhone 12 issues in the coming months. The upcoming iPhone 13 series, due to hit shelves in September, is likely safe too.

Samsung followed in a distant second place

Samsung was the world’s largest smartphone brand in the second quarter of 2021 and the second largest in terms of smartphone revenue, with a 15% share. That’s down from 17% in Q2 2020.

The South Korean giant shifted its focus towards premium smartphones in regions like the US where there were supply issues, meaning it maximized its revenue potential in a bad situation.

Counterpoint claims that Samsung also diversified its portfolio in Europe, as well as India and Central and Latin America. Supply constraints are expected to continue into the second half of 2021, so it’ll be interesting to see how Samsung holds up.

Xiaomi continues to reap the benefits of Huawei's exit

Xiaomi was a huge winner on the shipment front, and it also posted nice gains in the revenue department. The Chinese brand reportedly accounted for 9% of global smartphone revenue, up from 6% a year ago.

The company continues to rely heavily on low-cost smartphones, but increased demand for mid-range smartphones in Europe and Southeast Asia provided a nice boost to overall revenue.

Demand for the premium Mi 11 series is said to have been strong too, adding an extra slice of revenue to the pile. Of course, it goes without mentioning that Huawei's exit from global markets has been a benefit.

Xiaomi has so far remained largely unaffected by the global chip shortages. While it’s unlikely to overtake Samsung in terms of revenue share, it may well become the number one brand by volume in the near future.

Oppo and Vivo matched Xiaomi’s performance with another 9% share of revenue each. That’s up from 7% and 6%, respectively. Global expansion and continue performance in China drove Oppo’s better results, whereas Vivo’s success was mainly attributed to its mid-range products.