Apple Inc. (NASDAQ: AAPL) has defied the slowdown in the global smartphone industry, with its share of the overall industry's profit hitting a new record in the June quarter.
What Happened: Even as the global smartphone industry reported a decline in profits, Apple increased its share of profits to 85% in the June 2023 quarter, significantly up from 81% in the same period last year, according to data from Counterpoint Research.
The report says that the global smartphone industry reported an 8% decline in revenue and a 3% decline in profit on a year-on-year basis.
Despite this, Apple's share in the global smartphone industry's profits hit a new record of 85%, up from 82% last year.
In the same period, Apple increased its share of global smartphone industry revenues from nearly 42% last year to 45% now.
If this sounds like a repeat of another story, that is because Apple's market share in the US rose from 45% in the June 2022 quarter to 55% in June 2023.
Here's How Apple Is Making More Money Even As The Industry Is Slowing Down
Despite a slowdown in global smartphone shipments, revenues, and profits, Apple is making more money, defying the global trend.
Counterpoint's Research Director, Jeff Fieldhack, credits a richer product mix for this.
"Apple's average selling price (ASP) increased thanks to a growing contribution of the Pro series, declining contribution of the SE series and the replacement of the Mini in iPhone 13 with a Plus in iPhone 14," he said.
The next few quarters could prove to be even better for Apple, with the company expected to increase the iPhone 15 Pro and iPhone 15 Pro Max prices by $100 each. This will also be Apple's first price hike since the company launched the 'Pro' branded iPhones.