Huawei became the most profitable Android device maker in Q3 2016 for the first time, with $200 million in operating profit, although this was only 2.4 per cent of global smartphone profits, Strategy Analytics revealed.
Apple dominated with a whopping 91 per cent share of total profits in the quarter.
The report said Apple’s ability to maximise pricing and minimise production cost is “hugely impressive”, adding that the iPhone continues to generate “monster profits”.
Huawei, Vivo and OPPO, all Chinese firms, are the next three most profitable smartphone vendors globally this quarter, but “they are still a long way behind Apple.”
“An efficient supply chain, sleek products and effective marketing have been among the main drivers of Huawei’s robust profitability,” the study noted, while Vivo and OPPO, both with 2.2 per cent of total global profits, “delivered relatively healthy profitability due to disciplined pricing and soaring shipments across Asia”.
According to Linda Sui, director at Strategy Analytics: “Huawei, Vivo and OPPO have not only improved their smartphone product lineups this year, they have also enhanced their operational abilities and kept a tight lid on expanding distribution costs.”
A report from earlier this month revealed that Android captured a record 88 per cent market share of global smartphone shipments in Q3 2016, which hit 375 million units, up 6 per cent year-on-year, the industry’s fastest growth rate for a year.
Source: Mobile World Live