Apple now taking 2/3 share of mobile phone industry profits

Posted:
in iPhone edited January 2014
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.



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Comments

  • Reply 1 of 42
    jj.yuanjj.yuan Posts: 212member
    Way to go, Apple!
  • Reply 2 of 42
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by AppleInsider View Post


    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.
  • Reply 3 of 42
    SpamSandwichSpamSandwich Posts: 30,429member
    Quote:
    Originally Posted by cloudgazer View Post


    It's also a much bigger pie, which is interesting.



    And the pie now has apple filling, instead of blackberry filling.
  • Reply 4 of 42
    solipsismsolipsism Posts: 25,726member
    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.
  • Reply 5 of 42
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by SpamSandwich View Post


    And the pie now has apple filling, instead of blackberry filling.



    The filling was Nokia before, which I guess means it was canned fish.
  • Reply 6 of 42
    paul94544paul94544 Posts: 1,027member
    Quote:
    Originally Posted by solipsism View Post


    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?
  • Reply 7 of 42
    MacProMacPro Posts: 17,835member
    Just so I am clear ... this isn't just the 'smart phone market' this is the overall mobile phone market?
  • Reply 8 of 42
    alfiejralfiejr Posts: 1,524member
    Bloodbath.
  • Reply 9 of 42
    ktappektappe Posts: 758member
    Quote:
    Originally Posted by digitalclips View Post


    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.
  • Reply 10 of 42
    cpsrocpsro Posts: 2,424member
    Samsung releases some sour puss news.
  • Reply 11 of 42
    BIG Apple fan here. Been a user since the very start. But this is getting scary.
  • Reply 12 of 42
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by digitalclips View Post


    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.
  • Reply 13 of 42
    MacProMacPro Posts: 17,835member
    Quote:
    Originally Posted by cloudgazer View Post


    yes, this is all handsets - the entire mobile phone handset market globally.



    Sheesh!
  • Reply 14 of 42
    dick applebaumdick applebaum Posts: 12,504member
    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!
  • Reply 15 of 42
    aaronjaaronj Posts: 1,595member
    Quote:
    Originally Posted by ktappe View Post


    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?
  • Reply 16 of 42
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by ktappe View Post


    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.
  • Reply 17 of 42
    Quote:
    Originally Posted by Dick Applebaum View Post


    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!!
  • Reply 18 of 42
    ochymingochyming Posts: 474member
    Apple the sole USA company that is less USA centric and perhaps the last true USA innovative minded corporation.





    Apple competing with TWO powerful cartels …

    PC vendors cartel and now android vendors cartel,

    … And still making profit.





    : All that without compromising Steve Jobs infamous bad temper.

    : A marvel Indeed!





    I still see Microsoft and sadly joining it, Google as USA ( manufacturing lacking model economics ) and Apple as Germany ( manufacturing wisely inclined .)
  • Reply 19 of 42
    alfiejralfiejr Posts: 1,524member
    Quote:
    Originally Posted by Cpsro View Post


    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.
  • Reply 20 of 42
    dymonedymone Posts: 3member
    Read that headline one more time.



    "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!
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