Large OEMs are feasting on premium margins while smaller OEMs seek opportunity in underserved markets such as the low- to mid-price bands
In Technology Business Research, Inc.’s (TBR) 3Q17 Devices and Platforms Benchmark the company estimates total benchmarked devices revenue increased 8.6% year-to-year to $102.8 billion in 3Q17. The spike of iPhone sales as consumers purchased iPhone 8 and iPhone X impacted the ecosystem revenue pool positively, and Apple contributed 51.1% of total device ecosystem revenue in 3Q17. Overall benchmark computing devices gross profit increased 17.5% year-to-year to $26.4 billion. Similar to its impact on revenue this quarter, demand for Apple’s new lineup for iPhones bolstered gross profit. Apple iPhone gross profit accounts for 46.2% of total ecosystem gross profit. Despite growth this quarter due to the iPhone 8 and X, rising component prices will continue to negatively impact device gross margins.