According to Counterpoint, the smartphone market has likely reached its peak, and consumers are waiting longer to replace their devices. With that in mind, OEMs are increasingly look to find ways to increase their profit margins.
Here's another interesting tidbit of information from Counterpoint's report: the iPhone X alone accounted for 35 percent of all industry profits during Q4 2017. There have been numerous reports talking about lagging sales for the iPhone X, but the sheer profit potential of the units that Apple is selling cannot be underestimated. However, it's to be expected given that the iPhone X starts at a whopping $999 for the 64GB model and $1,149 for the 256GB model. For comparison, the Galaxy S9 and Galaxy S9+ are priced at $720 and $840 respectively, unlocked direct from Samsung.
"The share of iPhone X is likely to grow as it advances further into its life-cycle," said Karn Chauhan, a research analyst for Counterpoint. "Additionally, the longer shelf life of all iPhones ensured that Apple still has eight out of top 10 smartphones, including its three-year-old models, generating the most profits compared to current competing smartphones from other OEMs."
The iPhone X is having a lasting impression on the smartphone industry not just because of its dominant performance with regards to profits, but also with regards to design. The iPhone X's display notched was almost instantly panned when the smartphone was first announced late last year. However, many Android OEMs have flocked to copy the design quirk, including some big names like ASUS and LG.
In fact, a Samsung design patent was recently uncovered that details an unreleased Galaxy smartphone with a notched display similar to that of the iPhone X.