Apple iPhone X alone generated 35% of the total handset industry profits

According to the latest research from Counterpoint's Q4 2017, Global handset profits declined 1 percent YoY in Q4 2017 (October-December) as the premium smartphone market did not grow as expected, while Apple iPhone X alone generated 35 percent of the total handset industry profits, helping the iPhone maker grow 1 percent (YoY) in the same quarter.

"Global handset profits declined 1 percent YoY, but Apple grew 1 percent YoY even with the iPhone X being available for only two months in Q4 2017. The iPhone X alone generated 21 percent of total industry revenue and 35 percent of total industry profits during the quarter and its share is likely to grow as it advances further into its life cycle," Research Analyst, Karn Chauhan, said.

"Additionally, the longer shelf life of all iPhones ensured that Apple still has eight out of top ten smartphones, including its three-year-old models, generating the most profits compared to current competing smartphones from other OEMs," he said.

The global smartphone market has already reached its peak with longer replacement cycles and key smartphone OEMs are now under pressure to book profits.

"Chinese OEMs cumulative profits crossed $1.3 billion during Q4 2017. , was driven by the increased mix of mid to high-end smartphones. In fact, the average selling price (ASP) of their flagship devices also increased year-on-year," added Associate Director Tarun Pathak.

Key Chinese players like Huawei, OPPO, and Vivo are now looking to scale up the price band, by leveraging their in-house manufacturing capabilities and bringing innovation to their devices, he added.

iPhone X generated 5X more profit than the combined profit of 600+ Android OEMs during Q4 2017, the research firm pointed out that.

Apple and Samsung flagship models, lead in terms of profits as compared to other OEMs, however, iPhone X alone generated 35 percent of the total handset industry profits. This is a significant landmark, as the model was available in the market for only two months during Q4 2017.

Huawei was the leading brand among all the Chinese brands, with profit increasing 59 percent YoY.

Silly Mac Trick: iPhone Headsets Can Stick to MacBook

With an increased mix of flagship sales for key Chinese brands, we expect profit share of Chinese players to grow in the coming quarters.