’s xel is no doubt a hit, with some models still out of stock a couple of months after launch. An analysis by Morgan Stanley gives us an even more detailed picture about just how well the phone is doing what it may mean for ’s place in the smartphone market.
According to the report, ’s on track to sell three million phones with revenues around $2 billion. The biggest moneymaker is of course the 128GB xel X with a gross profit margin of 25 percent. The cheapest phone, the 32GB xel, comes in at 22 percent.
It’s good news for , though it still pales in comparison to Apple’s $28 billion in revenue it made from selling 45.5 million iones in the last quarter of this year alone. so, Samsung’s Galaxy S7 ge has spent most of the year as the top-selling Android phone. No doubt we’ll soon see a Galaxy S8 in a few months as Samsung tries to rebound from the Note7 disaster.
Morgan Stanley also notes that ’s profit estimate of $3.8 billion for the xel in 2017 is also derived from continuing to make money off the phone itself. The ay Store deep integration of services will lead to additional opportunities to rake in the cash.
As for getting your hs on one now, some xel models are still hard to come by. The xel Xis currently sold on on the Store, while some Verizon customers are continuing to have shipping delays with their Xpreorders.
y this matters: ’s initiative to compete directly in the smartphone business is definitely paying off. The Apple-like integration of hardware software is the right approach for a company that is betting heavily on its services being a critical component of your digital life. Further success for the xel, however, hinge upon getting the phone into other carrier stores. Currently Verizon is the only carrier to directly sell the xel.