Apple's 4% mobile market share rakes in over half the industry's profit
With just 4.2 percent of the global mobile phone market, Apple's iPhone accounts for a massive 51 percent of the total profits, a new report claims.
Apple continues to dominate the market when profit is measured, according to a new report from Asymco's Horace Dediu. The iPhone maker managed to add one percent to last quarter's 50 percent share of profits from the top eight mobile phone vendors in the December quarter, the report noted.
After data for the fourth quarter of 2010 was released last week, Apple placed fifth overall among global cell phone makers with 4 percent market share. Meanwhile, research firm Canalys published a report Monday showing that Google overtook Nokia as the top smartphone platform maker in the fourth quarter.
Apple revealed earlier this month that it sold 16.24 million iPhones in its first quarter of fiscal 2011, resulting in $10.5 billion of revenue for the company. Additionally, the average selling price of the iPhone increased from approximately $610 in the previous quarter to $625.
The Cupertino, Calif., company hit a major milestone in the December quarter when it passed Nokia to become the world's largest mobile phone vendor in terms of revenue.
The iPhone's share of global handset profits has been steadily climbing. In August of 2009, Apple was reported as making 32 percent of the industry's profits.
iPhone profits could continue to soar as Apple adds the new CDMA iPhone 4 to its lineup. According to Apple's Chief Operating Officer Tim Cook, the launch of the iPhone 4 on the Verizon network will not adversely affect the iPhone's ASP and profit margins. After being speculated for years, the iPhone will come to the nation's largest carrier on Feb. 10.
Verizon is conservatively projecting sales of 11 million iPhones in 2011, but executives have said that the handset could help the company's growth "really explode over the next several years." According to a recent analyst survey, Verizon could see as many as 25 million new iPhone subscribers this year.
Apple continues to dominate the market when profit is measured, according to a new report from Asymco's Horace Dediu. The iPhone maker managed to add one percent to last quarter's 50 percent share of profits from the top eight mobile phone vendors in the December quarter, the report noted.
After data for the fourth quarter of 2010 was released last week, Apple placed fifth overall among global cell phone makers with 4 percent market share. Meanwhile, research firm Canalys published a report Monday showing that Google overtook Nokia as the top smartphone platform maker in the fourth quarter.
Apple revealed earlier this month that it sold 16.24 million iPhones in its first quarter of fiscal 2011, resulting in $10.5 billion of revenue for the company. Additionally, the average selling price of the iPhone increased from approximately $610 in the previous quarter to $625.
The Cupertino, Calif., company hit a major milestone in the December quarter when it passed Nokia to become the world's largest mobile phone vendor in terms of revenue.
The iPhone's share of global handset profits has been steadily climbing. In August of 2009, Apple was reported as making 32 percent of the industry's profits.
iPhone profits could continue to soar as Apple adds the new CDMA iPhone 4 to its lineup. According to Apple's Chief Operating Officer Tim Cook, the launch of the iPhone 4 on the Verizon network will not adversely affect the iPhone's ASP and profit margins. After being speculated for years, the iPhone will come to the nation's largest carrier on Feb. 10.
Verizon is conservatively projecting sales of 11 million iPhones in 2011, but executives have said that the handset could help the company's growth "really explode over the next several years." According to a recent analyst survey, Verizon could see as many as 25 million new iPhone subscribers this year.
Comments
[terminate sarcasm autoresponse routine]
But everyone knows that the ONLY metric that counts is marketshare!!!! Profitability is a smokescreen for losers who can't pwn the market outright!!!
[terminate sarcasm autoresponse routine]
An interesting article from Cnet that touches on this:
http://news.cnet.com/8301-13579_3-20...ag=topStories3
C.
[snip]I'd rather see them make a little less and ensure their extended (third party) work force reap some of the benefits.
Indeed. With great wealth comes great responsibility. I'm a rabid fan of Apple products and am a shareholder. I DO want to see a company that values the people who make their products. Apple can be a valued mover in the world beyond providing really, really fantastic mobile and computing devices and software.
Just shows how much apple rip you off
Perhaps Nokia should try to rip people off too before it starts making a loss?
I wonder why it doesn't?
C.
Android is a shot adrenaline for companies that were on their death bed. They get a short boost of energy but they are still in the same poorly managed, myopic position they were before.
The best description of Motorola (or now, Motorola Mobility) I have seen to date.
Just shows how much apple rip you off
still, i buy from Apple insead of Nokia, Just like i buy from Lacoste instead of whatever brand WalMart sells, and from Audi instead of Kia. My point is the increase is cost is exponentially higher than the increase in quality in ANY market. Apple has the caché and the quality to justify their prices.
Just shows how much apple rip you off
While it's truly wonderful these other companies are so altruistic with no interest in turning a profit and often losing money with their selfless choices, I have to wonder why their shareholders haven't complained that these for-profit companies are being so charitable with their investments.
Now that Apple is officially loaded I am hoping that in the future the company will make a larger more public (because I don't know what they are doing as per now) effort to share its wealth. It is great that Apple is making dollars hand over fist but I'd rather see them make a little less and ensure their extended (third party) work force reap some of the benefits. Not just in terms of cash, but also in terms of working conditions etc. Apple seems to be in a position now to set an example and I for one would appreciate it if they would.
An interesting article from Cnet that touches on this:
http://news.cnet.com/8301-13579_3-20...ag=topStories3
"needs to be dispersed"
WARNING! Potentially caustic sarcasm! Wear your big-boy undies!!!
Yep cuz Apple doesn't do anything that helps their third party assemblers' workers, nor any other social agenda item. There is NO evidence whatsoever that Apple is doing anything other than standing by blithely raking in the profits while poor workers are routinely exploited.
Back on topic, the profits are what allow Apple to forward speculate for future devices and to leverage technologies which are now bleeding edge but could become mainstream. You do not drive as much innovation as Apple does by immediately turning around and pouring all the profits back out the door in philanthropic ardor! Do you know what aid Apple is providing to non-profit orgs, what money gets matched to employee contributions and what key needs orgs are actively supported? Does Apple NEED to tell you this because there is so much negative publicity to counter (which is usually when a corporate office releases those news items)? How about a break-down of the philanthropies supported by the BOD or the executive officers? Would that help? And did you miss all the articles in which the specifics about Apple's requirements for their suppliers were on record in support of their workers?
So, sounds like Apple is overcharging, just a bit, doesn't it?
Or perhaps you, and others, are having a hard time distinguishing value ... from cost. .....
As Apple steals profits away from other manufacturers the money available for those manufacturers to invest in R&D becomes constrained. Without R&D they can't create new handsets to compete with Apple. Without new handsets profits will decline. Which means less money for R&D. Etc etc. Its a death spiral for all companies that aren't large and healthy enough to weather the significant investments needed to compete with Apple.
But everyone knows that the ONLY metric that counts is marketshare!!!! Profitability is a smokescreen for losers who can't pwn the market outright!!!
[terminate sarcasm autoresponse routine]
You beat me to it...
What is totally pathetic is the fact the people who continue to hammer Apple because they are not #1 in Volume Share (Forget market share since you could argue market share is the % of total revenue as well) is the fact that these people are a product of our fine Business School in the country. They think that the only way to be #1 and profitable is to ship more product than the other guy. Well that is true if you are in the race to the bottom.
Just shows how much apple rip you off
Okay I'll take the bait...
It is only a rip off if you do not see the value and never wanted to pay that much. Remember you have choice, buy cheep and keep buying cheap or you buy something with value and having it for a long time...
I put it another way, Apple product cost me far less than the alternatives and add in the my stock value I way ahead of the game.