We all know that iPhones are expensive, and we know that Apple mobile phones have high profits, but how much more expensive are they compared to their counterparts from other brands? How high is the profit?

According to the latest survey statistics report from Counterpoint, in the second quarter of 2023, Apple mobile phone sales accounted for 45% of global smartphone sales. In comparison, Samsung, which ranked second, accounted for only 17% of sales. The top two brands accounted for 62% of total sales. Then it can be said that the total sales of other mobile phones are about 38%.

And speaking of profits, Apple's profits actually account for 85% of the global smartphone market! Samsung's profit market share is 12%, so Apple plus Samsung's profit share is as high as an astonishing 97%, which means that other mobile phones, including Huawei, Xiaomi, OPPO, VIVO, Infinix, etc., only get a total of 3 % market profit. Of course, thinking about it in the other way, it shows that the prices of other brands of mobile phones are indeed not expensive. The average price of an iPhone is about 3.95 times that of the other mobile phone, and the average profit of an iPhone is 94.4 times that of the other mobile phone.

However, in terms of sales, in recent years, the sales of the Chinese brand mobile phone have gradually caught up with Samsung and Apple. As far as the second quarter of 2023 is concerned, Xiaomi, OPPO, and vivo have all entered the top five in the world, and the sales of Honor and Huawei have also made rapid progress.

The question is, Chinese brand mobile phones are not cheap, so who actually earn the profits from Huawei, Xiaomi, OPPO, VIVO, Infinix, etc.?

In fact, it is very simple, that is, the profits are taken away by the supply chain. We know that the manufacturers of Chinese brand mobile phone buy Qualcomm's most expensive chips, Samsung's best and most expensive OLED screens,they Buy Sony's best CMOS sensor, and Samsung/SK Hynix's fastest memory, best storage.

The cost of these hardware is not cheap, and various patent fees have to be paid, which leads to very high production costs of manufacturing mobile phones. Every mobile phone manufacturers wants to increase their market share and the competition of Chinese mobile phones is so fierce so that the phenomenon of intense competition leads to the fact that the mobile phones cannot be sold at a high price easily, so the profit margin is very low.

On the contrary, Apple owns its own chips and systems, and never piles on configurations. Just enough is enough. But if Apple has a good experience, the price is high. Samsung has its own screen, its own memory, its own storage, and its own chips. Of course, the cost will be low, and the final profit will be high. It can be seen that compared with Apple and Samsung, domestic mobile phones only win in sales volume, but they are still far behind in other aspects.

On the contrary, Apple has its own chips and systems, has a good user experience, and has a large number of loyal customers, so the price is high. Samsung has its own screens, its own memory, its own storage, and its own chips so that the cost will be low, and the final profit will be high.

About Oriwhiz

Oriwhiz is a mobile phone LCD/OLED screen and other phone spare parts' manufacturer(factory) which is located in Shenzhen China.We are cell phone display wholesaler(Chinese supplier), offer OEM and ODM service to customers all over the world. Our products have ISO9001,CE,FCC,ROSH certificate. All of our products are manufactured by brand new materials and 100% quality test before shipping. We promise our best quality products will be delivered to our clients on time. We have professional customer service and welcome inquiry any time. Our main products include: iPhone LCD,iPhone Charging Port,iPhone Front Camera,iPhone Back Camera,iPhone ear speaker,iPhone Battery.etc.Not only iPhone related products,we also have mobile phone parts for Samsung,Huawei,Xiaomi Oppo,Vivo etc.