Apple logs $151 profit per handset in Sep quarter

Global tech giant Apple Inc's average profit per handset was USD 151 (over Rs 9,600) in the July- September quarter, five times more than that of its closest rival Samsung, according to research firm Counterpoint. Samsung, which had one of the highest number of models across price bands in its portfolio, had a profit of USD 31 (over Rs 1,900) per unit in the same period, Counterpoint said in its report titled 'Market Monitor Program for Q3'.

The report noted that the global mobile handset profits had grown 13 per cent year-on-year in the JulySeptember 2017 quarter "due to strong performance of Samsung and Chinese brands". "Apple's per unit profit is five times higher than Samsung and approximately 14 times higher than the average per unit profit of Chinese brands. Apple's per unit profit stood at USD 151 in Q3 2017," the report said. "Samsung made a strong comeback in the third quarter with its Note 8 series while S8 series continue to perform on par. The profit share reached 26 per cent as compared to its loss during Q3 2016 due to Note 7 debacle," it added. Huawei witnessed the highest profit growth of 67 per cent yearon-year in the said quarter due to its portfolio expansion across price bands.

"Chinese brands like Huawei, Oppo and Vivo are all performing similar in terms of profits per unit, each having an average per unit profit of USD 15, USD 14 and USD 13, respectively," the report said. However, Xiaomi -- when compared with its Chinese peers -- had a lower per unit profit of USD 2 as it plays on very thin margins, the report said. Apple accounted for nearly 60 per cent of the total profits generated in mobile handset segment, followed by Samsung (26 per cent) and Huawei (4.9 per cent). Oppo and Vivo captured the fourth and fifth spot, driven mainly by their performance in China. "This is the first time ever when the cumulative profits of Chinese brands crossed USD 1.5 billion for the first in a single quarter," Counterpoint Associate Director Tarun Pathak said. He added that usually all the profits have been shared by just two brands -Samsung and Apple. "The growth of Chinese brands can be attributed to the diligent efforts in streamlining the supply chain with rising mix of mid to high end smartphones in their portfolio," he said adding that even in the premium segment, players like Huawei are positioning their flagship models. "This strategy is designed to penetrate premium market while maximising revenue and profit," he noted. Counterpoint Research Director Neil Shah said Apple still generates more than a USD 150 profit per iPhone sold and this will continue to grow into the holiday season quarter, buoyed by the higher priced iPhone X series. "Our recent channel checks across key Apple markets showed, the demand for the 256GB version of iPhone X is higher which will boost Apple's profits even higher," he added. In India, the MRP of Apple’s iPhones ranges between Rs 26,000 and Rs 1.02 lakh. The high-end iPhone X is available at Rs 89,000 onwards. Tesla Inc. CEO Elon Musk has announced, on Twitter, that his company will make a pickup truck right after "Model Y" -- a crossover SUV vehicle that is reportedly in advanced stages of development. Musk had asked his 17.1 million Twitter followers for feedback on how the auto and power company "can improve further", to which one user responded by saying that "a pickup truck is needed".

"I promise that we will make a pickup truck right after Model Y. Have had the core design/engineering elements in my mind for almost five years. Am dying to build it," Musk tweeted on Tuesday. In terms of size, the pickup truck will be comparable or slightly bigger than Ford's F-150. "Maybe slightly bigger to account for a really gamechanging (I think) feature I'd like to add," Musk tweeted in his reply.

In November, at Tesla's big semi-truck unveiling, Musk revealed an image of an electric pickup truck, based on the architecture of the semitruck. Earlier in the year, Musk had said that the auto company planned to show off an electric pickup sometime within the next couple of years. Asko Norway, the largest grocery wholesaler in Norway, with more than 600 vehicles in its fleet of cargo trucks, became the first company in Norway to place an order for the Tesla semitruck. NASDAQ-traded Tesla is reportedly selling each semi for about USD 190,000.