Apple overtakes Nokia to claim handset profit crown

Posted:
in General Discussion edited January 2014
Analysts estimate Apple's iPhone operating profit to be the highest in the mobile phone industry, overtaking market leader Nokia in the last financial quarter.



Although Nokia and Samsung are the world's largest two cellphone makers, Apple has bested both in terms of total operating profit, says research firm Strategy Analytics.



Reuters reports that although Apple does not disclose profits by line, operating profit was estimated at nearly $1.6 billion in the third quarter of this year, compared to $1.1 billion in profit by Nokia for the same period of time.



The news only serves to reiterate what has been known for some time: Apple, along with competitor Research in Motion, carries a much higher profit margin on its handsets than competitors. This summer, a report stated that though Apple and RIM together only control 5 percent of the cell phone market, they take 58 percent of its total operating profits.



Another report said that Apple sees an estimated 32 percent of global handset profits, which is 8 percent of all mobile revenue. Those numbers are not just limited to the smartphone market segment, but account for all mobile phones sold in the first half of 2009.



Last quarter, Apple announced that the average selling price of each iPhone is just over $600, demonstrating that consumers typically opt for the high-end iPhone 3GS. Though consumers only pay a fraction of the value of the handset, the rest is subsidized through a contract with a wireless carrier.



Tuesday, Samsung introduced a new smartphone platform dubbed Bada, which is poised to directly compete with both the iPhone and Android platforms. Bada is an attempt by Samsung to create its own self-contained smartphone operating system like competitors Apple, Palm, and RIM. The first phones sporting the new Bada platform are slated for early in 2010.



Nokia also has a new operating system in the works, called Maemo. Nokia's first Maemo-based phone, the N900 started shipping Tuesday.
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Comments

  • Reply 1 of 115
    MacProMacPro Posts: 17,567member
    Holy Moly!
  • Reply 2 of 115
    I guess many companies are starting to look at Apple from the rear view, if not exactly in the front view...



    Kudos to Apple. They are the company of the first decade of the 21st century. Let's see how the game will be played in the next decade!
  • Reply 3 of 115
    Now we know why Nokia is suing Apple.



    Sore losers.





    But I think Apple's iPhone success is limited, the competition is catching up and dozens of cheaper iPhone knockoffs appearing.



    Especially the Droid, that's going to hurt. Stupid AT&T lock-in.



    Apple will have to come up with something EVEN BETTER like they did with the iPod as to knock them out.



    With the iPod they came out with smaller versions, different colors and so on to lock up the whole market.



    Will Apple do the same with the iPhone?



    A larger iTablet type version? A smaller less expensive option?



    The $100 a month for the iPhone is turning me off, especially when I fish a lot and can lose it overboard.



    $15 a month is more my style. Not that I'm cheap, it's no sense wasting a good phone for the fish to use to tele-market people with.



    Fish need money too.
  • Reply 4 of 115
    MacProMacPro Posts: 17,567member
    Quote:
    Originally Posted by MacTripper View Post


    Now we know why Nokia is suing Apple.



    Sore losers.





    But I think Apple's iPhone success is limited, the competition is catching up and dozens of cheaper iPhone knockoffs appearing.



    Especially the Droid, that's going to hurt. Stupid AT&T lock-in.



    Apple will have to come up with something EVEN BETTER like they did with the iPod as to knock them out.



    With the iPod they came out with smaller versions, different colors and so on to lock up the whole market.



    Will Apple do the same with the iPhone?



    A larger iTablet type version? A smaller less expensive option?



    The $100 a month for the iPhone is turning me off, especially when I fish a lot and can lose it overboard.



    $15 a month is more my style. Not that I'm cheap, it's no sense wasting a good phone for the fish to use to tele-market people with.



    Fish need money too.



    I'd keep the iPhone but leave it in the car when I fish if I were you. That makes me think.. what would it cost to replace a lost one ... I can't see AT&T kicking in and insurance companies might balk at taking one in a boat .. \
  • Reply 5 of 115
    solipsismsolipsism Posts: 25,726member
    They have nearly 50% more operating profits than the number position. That could their profits this next quarter. Quite amazing considering they did this with the iPhone 3 a full 6 months after it was on the market and less than two years into the cellphone business.
  • Reply 6 of 115
    Hardly surprising.
  • Reply 7 of 115
    rhyderhyde Posts: 294member
    As wonderful as this might seem from an Apple Fanboy point of view, do keep in mind that they are generating these high profits from *US*. I love my iPhone (and my Macs) and I happen to love AT&T (far better than Sprint, whom I had before), but I can't wait for Android, etc., to start growing and for multiple carriers to get the iPhone (not just Verizon) so that Apple (and the carriers) are forced to lower their profit margins a bit. Hopefully, this will happen in two years when my 3gs contract expires :-)
  • Reply 8 of 115
    cubertcubert Posts: 728member
    ?We've learned and struggled for a few years here figuring out how to make a decent phone. PC guys are not going to just figure this out. They're not going to just walk in.?



    \t- Palm CEO Ed Colligan, commenting on then-rumored Apple iPhone, Nov. 16, 2006
  • Reply 9 of 115
    Why does this article have a different take on the numbers than what's on ArsTechnica?



    Smartphones beat recession, Nokia still on top

    http://arstechnica.com/business/news...ill-on-top.ars



    Quote from Article



    Quote:

    The next largest smartphone maker by market share and volume was also the one that saw the most spectacular year-over-year growth—and no, the company doesn't doesn't have the name of a certain fruit. We're talking about RIM, which saw a whopping 37.5 percent year-over-year growth in shipments. The Blackberry Curve and Tour were apparently on fire this past quarter, especially in North America.



    Quote:

    Apple was a very distant third behind RIM in the growth category and in market share, with 7 percent year-over-year growth, most of which was attributable to the strong iPhone 3GS launch. Still, Apple's success comes in spite of the fact that the iPhone is still relatively pricey, and it's tied to a single carrier in the US (AT&T) that many are reluctant to switch to because of coverage and service quality issues.



    7% year over year growth in comparison to 37.5% for RIM?



    This may be an Apple site but at least put the truth in the article postings and include the entire story not just what is going to get Ad Clicks for titles!
  • Reply 10 of 115
    Quote:
    Originally Posted by digitalclips View Post


    I'd keep the iPhone but leave it in the car when I fish if I were you. That makes me think.. what would it cost to replace a lost one ... I can't see AT&T kicking in and insurance companies might balk at taking one in a boat .. \





    You need a phone when fishing in the ocean, as a backup method in case your boat power goes out, plus it doubles as a GPS tracking method.



    I keep mine and other valuables in a water tight float case with a signal buoy/float, just in case the boat capsizes or sinks.



    However I got to use it, to call friends and such, it gets all fishy and salt covered.



    So $15 a month is what I'll pay, most everything else the iPhone can do is done on a computer which seems to be games.



    Now if I can get the iPhone apps on a computer...it's stupid not having those 100,000 apps on a computer too.



    WTF?
  • Reply 11 of 115
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by MrCompMan View Post


    7% year over year growth in comparison to 37.5% for RIM?



    This may be an Apple site but at least put the truth in the article postings and include the entire story not just what is going to get Ad Clicks for titles!



    Welcome to the forum. To be honest, I’m not entirely sure I understand what you are getting it...



    1) Growth YoY does not indicate operating profits.



    2) Shipment growth doesn’t indicate operating profits.



    3) Revenue doesn’t indicate operating profits.
  • Reply 12 of 115
    Quote:
    Originally Posted by solipsism View Post


    Welcome to the forum. To be honest, I’m entirely sure I understand what you are getting it...



    1) Growth YoY does not indicate operating profits.



    2) Shipment growth doesn’t indicate operating profits.



    3) Revenue doesn’t indicate operating profits.



    The article is clearly biased and not giving the entire story. I'm just making sure the readers (like myself) that see an article on my google home page and click it don't get the wrong impression and read the entire story on a site that appears to be much more open to giving the entire story than this site is.



    The article makes it sound like Nokia and RIM are closing the doors and they are seeing better year over year growth than the single iPhone.



    Year over year growth does say a lot about a mindshare in the market. Apple clearly doesn't have it and Android numbers haven't won't even be worth checking for a couple quarters. But I wouldn't be surprised to see them pull a segment of the appphone market share from everyone.



    This is a forum not a cheer leading session. If a site is going to post a story. Give the entire picture. 7% year over year gain is poor given the market.
  • Reply 13 of 115
    Quote:
    Originally Posted by rhyde View Post


    As wonderful as this might seem from an Apple Fanboy point of view, do keep in mind that they are generating these high profits from *US*. I love my iPhone (and my Macs) and I happen to love AT&T (far better than Sprint, whom I had before), but I can't wait for Android, etc., to start growing and for multiple carriers to get the iPhone (not just Verizon) so that Apple (and the carriers) are forced to lower their profit margins a bit. Hopefully, this will happen in two years when my 3gs contract expires :-)



    Get out of my Head Ryde! I could have written what you just wrote!



    My sentiments exactly....I love my macs and my 3gs but hate paying $100/mo!



    I think the general public is missing the pt with the iPhone's new competitors.



    It's the Apple ecosystem...syncing contacts/address book with my other macs is a breeze with the iPhone, music via my mac's iTunes library making playlists and downloading Podcasts to listen while I run using Nike+ (10 miles today) is a breeze, I went kayaking on a glorious AZ day and sent the video to my daughter who is out of state going to school and she got it in a minute.



    Came home put all the clips into iMovie, streamed over to my AppleTV widescreen TV and my girlfriend thinks I'm a genius...probably added 4 years to the length of our relationship!



    Not to mention the ease of my email....it is just fantastic!



    Best
  • Reply 14 of 115
    Quote:
    Originally Posted by christopher126 View Post


    Get out of my Head Ryde! I could have written what you just wrote!



    My sentiments exactly....I love my macs and my 3gs but hate paying $100/mo!



    I think the general public is missing the pt with the iPhone's new competitors.



    It's the Apple ecosystem...syncing contacts/address book with my other macs is a breeze with the iPhone, music via my mac's iTunes library making playlists and downloading Podcasts to listen while I run using Nike+ (10 miles today) is a breeze, I went kayaking on a glorious AZ day and sent the video to my daughter who is out of state going to school and she got it in a minute.



    Came home put all the clips into iMovie, streamed over to my AppleTV widescreen TV and my girlfriend thinks I'm a genius...probably added 4 years to the length of our relationship!



    Not to mention the ease of my email....it is just fantastic!



    Best



    If what you did today added 4 years to your "relationship" then you're already planning on it ending and she's easily impressed.
  • Reply 15 of 115
    I am thinking of starting a new career.



    Job title: reviewer of iPhone killers.



    Should keep me in nachos and beer for a while.
  • Reply 16 of 115
    Quote:
    Originally Posted by MrCompMan View Post


    If what you did today added 4 years to your "relationship" then you're already planning on it ending and she's easily impressed.



    Now, now be nice! Maybe I'll marry the 'hell' out of her!
  • Reply 17 of 115
    Quote:
    Originally Posted by christopher126 View Post


    Now, Now be nice!



    Realistic, unlike this article.
  • Reply 18 of 115
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by MrCompMan View Post


    If what you did today added 4 years to your "relationship" then you're already planning on it ending and she's easily impressed.



    Quote:
    Originally Posted by MrCompMan View Post


    Realistic, unlike this article.



    Wow! I often as it happens I never get used to new posters coming in and insulting people right off the bat.
  • Reply 19 of 115
    Quote:
    Originally Posted by solipsism View Post


    Wow! I often as it happens I never get used to new posters coming in and insulting people right off the bat.



    Given the misleading article and the intellect of the postings I've read in some other stories, should it really surprise you?
  • Reply 20 of 115
    Nice to know that Apple could sell their phones for less, but don't.
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