Apple now taking 2/3 share of mobile phone industry profits
Apple's share of the mobile phone industry's profits has swelled to around two thirds, as the company's iPhone sales have remained profitable while achieving the top spot in sales.
Even before displacing Nokia as the world's top smartphone maker in the most recent quarter, Apple has long consumed a disproportionate slice of the industry's profits.
Apple first grabbed the largest slice of phone profits in mid 2008, just a year after the iPhone went on sale. That slice climbed to 50 percent of the industry's profits by last year.
This quarter however, an overall decline in profits among top mobile makers kicked Apple's share of total profits up past 66 percent, with Samsung pulling in the next largest slice of profits with just 15 percent, RIM collecting an 11 percent share, and HTC bringing in 7.4 percent.
Nokia, Motorola, Sony Ericsson and LG all managed to lose money selling phones in the quarter, as presented graphically in a chart by Horace Dediu of Asymco (below; other charts on the Asymco site).
The role reversal of Apple and Nokia since the appearance of the iPhone in 2007 is particularly striking. Just after the iPhone debuted, Nokia had a 55 percent share of mobile profits while Apple claimed just a 5 percent sliver.
This year, Apple's slice of the pie is even larger than Nokia's was four years ago, and Nokia can't claim any percentage of the industry's profits.
Even before displacing Nokia as the world's top smartphone maker in the most recent quarter, Apple has long consumed a disproportionate slice of the industry's profits.
Apple first grabbed the largest slice of phone profits in mid 2008, just a year after the iPhone went on sale. That slice climbed to 50 percent of the industry's profits by last year.
This quarter however, an overall decline in profits among top mobile makers kicked Apple's share of total profits up past 66 percent, with Samsung pulling in the next largest slice of profits with just 15 percent, RIM collecting an 11 percent share, and HTC bringing in 7.4 percent.
Nokia, Motorola, Sony Ericsson and LG all managed to lose money selling phones in the quarter, as presented graphically in a chart by Horace Dediu of Asymco (below; other charts on the Asymco site).
The role reversal of Apple and Nokia since the appearance of the iPhone in 2007 is particularly striking. Just after the iPhone debuted, Nokia had a 55 percent share of mobile profits while Apple claimed just a 5 percent sliver.
This year, Apple's slice of the pie is even larger than Nokia's was four years ago, and Nokia can't claim any percentage of the industry's profits.
Comments
This year, Apple's slice of the pie is even larger than Nokia's was four years ago, and Nokia can't claim any percentage of the industry's profits.
It's also a much bigger pie, which is interesting.
It's also a much bigger pie, which is interesting.
And the pie now has apple filling, instead of blackberry filling.
And the pie now has apple filling, instead of blackberry filling.
The filling was Nokia before, which I guess means it was canned fish.
The dissenters will point out that Apple's profit growth rate is slowing down as if one doesn't expect them to plateau as the reach toward 100% of the profits.
and Apple has broken up out of its trading range and not even the fiasco in Washington has put much of a dent in its rise. In fact it represents buying opportunity at $390 on its way to 450 by end of year and 500 after that. I just bought another mac after my iPad2 all paid for by profits on the stock. God knows what will happen when the Apple HDTV comes out and takes Samsung, Viseo and the like down. Why can't these idiot TV manufacturers do a half decent interface - all they understand is boneheaded hierarchical menus. Oh well more profit and market share for Apple I suppose. I bet the folks at Apple can't wait to take them on and show up their inferior products. What other devices can Apple destroy? DVD's prob not! Camera's gee I wish I had a half decent interface for my digital camera, they all suck so bad. how about a half decent interface on a car nav?
Just so I am clear ... this isn't just the 'smart phone market' this is the overall mobile phone market?
Good question. Also, is this U.S. or worldwide? I can't imagine it's worldwide; far too may cheap flip-phones are still sold in less-developed nations for Apple to even make a dent there.
Just so I am clear ... this isn't just the 'smart phone market' this is the overall mobile phone market?
yes, this is all handsets - the entire mobile phone handset market globally. Some OEMs and ODMs are maybe excluded, like ZTE - if there's no good data for them, but they are all pretty small.
yes, this is all handsets - the entire mobile phone handset market globally.
Sheesh!
I just got delivery of a top of the line, custom configured, bo-wah-diddle iMac 27 (the Promise RAID ships next month)
FWIW, I have Final Cut Pro X, Motion 5, and a YouTube Flash page -- all open, with files, and idle...
Guess which uses the most resources?
0.8% CPU 992 MB RAM -- FCPX
0.3% CPU 1.76 GB RAM -- Motion 5
8.0% CPU 216.4 MB RAM
The Apple iPhone and iPad paid for my new toys...
Thanks Apple, Keep up the good work!
Good question. Also, is this U.S. or worldwide? I can't imagine it's worldwide; far too may cheap flip-phones are still sold in less-developed nations for Apple to even make a dent there.
This is profits, though. It's not units "sold." How many of those cheap phones would it take to equal the profit from the sale of a single iPhone4?
Good question. Also, is this U.S. or worldwide? I can't imagine it's worldwide; far too may cheap flip-phones are still sold in less-developed nations for Apple to even make a dent there.
This is profits, and unsurprisingly the profits on those phones are tiny, in fact given that the biggest vendor in those markets is Nokia, the profit on those products is currently negative.
WOT
I just got delivery of a top of the line, custom configured, bo-wah-diddle iMac 27 (the Promise RAID ships next month)
FWIW, I have Final Cut Pro X, Motion 5, and a YouTube Flash page -- all open, with files, and idle...
Guess which uses the most resources?
0.8% CPU 992 MB RAM -- FCPX
0.3% CPU 1.76 GB RAM -- Motion 5
8.0% CPU 216.4 MB RAM
The Apple iPhone and iPad paid for my new toys...
Thanks Apple, Keep up the good work!
Enjoy that sweet rig Dick!!
Apple competing with TWO powerful cartels …
PC vendors cartel and now android vendors cartel,
… And still making profit.
I still see Microsoft and sadly joining it, Google as USA ( manufacturing lacking model economics ) and Apple as Germany ( manufacturing wisely inclined .)
Samsung releases some sour puss news.
they don't' have the guts to report their tablet sales. the 7" Galaxy had to be a total disaster, and the 10" Galaxy ain't doing that great either. so they are using Apple as an implied excuse for a cover up to avoid embarrassment.
of course the Android-loving tech websites are not going to call them on this. they don't' want to know the truth either.
"Apple now taking 2/3 share of mobile phone industry profits"
The key word in that headline is profits. Now consider the fact that there are a multitude of Android based phones on the market, which now sells more world wide than Apple. Consider there are even more old flip and candy bar style phones which also (albeit non smartphones) outsell Apple. Apple has 1 phone, 1 iStore, 2 Carriers (Verizon and At&T) There are more cell phone providers than you can shake a stick at, nevermind the "pay as you go" style companies out there. So 1 iPhone, 1 iStore and 2 Carriers vs The rest of the mobile phone World! Apple is a small market share in comparison to the rest, however, and yes reference the headline, 2/3 of the profits are in apples pockets.
What does this mean? Profits? It means Apple Overprices their phones and services over and above the rest. And you all pay for it and say Yay!
I would not be proud to admit I was not smart enough to shop around.
Congrats on your phones!