iPhone X on Track to Become Top Profit Generating iPhone
Apple’s iPhone X has now crossed the 60-million mark in cumulative shipments since its launch last year, according to the latest data from Counterpoint research. While the volume of shipments isn’t too flattering, because of the high price, the iPhone X is reportedly on track to becoming the most successful revenue and profit generating iPhone ever. Apple has managed to rake in $62 billion in revenue from iPhone X sales in ten months, similar to the iPhone 6 revenue figures after ten months of sales. The iPhone 6 managed to break all sales and revenue records when it launched with a new design in 2014, and now the iPhone X looks to break the ‘revenue super cycle’ record this year.
The Counterpoint data notes that the iPhone 6 still remains on top in the ‘volume super cycle’ with 30 million more iPhone 6 units shipped than iPhone X during its first 10 months of sales. To clear the 60 million mark, the iPhone 6 took only six months, therefore volume-wise the iPhone 6 triumphs. But the iPhone X was launched at a time when the smartphone market was saturated, and sales weren’t growing at a favourable pace. However, because of its high ASP, it managed to bring in more revenue for Apple. “However, iPhone X which drove a completely radical new design language helped Apple to command a significantly higher Average Selling Price (ASP) at a point when the overall smartphone market was beginning to saturate. So, while the fabled volume super-cycle has not materialised, Apple has actually delivered a revenue super-cycle, posting record iPhone revenues and Average Selling Prices (ASPs) since the iPhone X launch. Both iPhone 6 and iPhone X generated almost similar revenues of $62 billion (roughly Rs. 4,47,451 crores) across a similar period (first 10 months). iPhone X is therefore also a factor in Apple becoming the first trillion-dollar company,” Counterpoint notes in its report.
The report also states that US, China, and Japan were major contributors to the iPhone X sales numbers, with two-third of the total iPhone X shipments coming from these three countries. For Apple, iPhone X contributed to almost one third of the total iPhone shipments and half of total iPhone revenues since launch. Notably, India contributed to just one percent of the total iPhone X shipments so far, hinting that an urgent need of a strategy rethink in emerging markets is needed if Apple wants to increase its user base. The report states that the revenue of iPhone X alone was higher than each of the top smartphone brands – Huawei, Oppo, Vivo, Xiaomi – in the past ten months.
Clearly, the iPhone X, even with its steep price, was a winner in Apple’s scheme of things, and the report states that the company is looking to continue this trend with the new iPhones as well. Counterpoint predicts that expect Apple will command even higher average selling price (ASP) with the rumoured three new iPhone launches this time, and the cheap LCD variant and OLED variants will likely drive even more revenue for the company.