Apple overtakes Nokia to claim handset profit crown
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.
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.
Comments
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!
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.
Fish need money too.
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.
Fish need money too.
I'd keep the iPhone but leave it in the car when I fish if I were you.
\t- Palm CEO Ed Colligan, commenting on then-rumored Apple iPhone, Nov. 16, 2006
Smartphones beat recession, Nokia still on top
http://arstechnica.com/business/news...ill-on-top.ars
Quote from Article
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.
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!
I'd keep the iPhone but leave it in the car when I fish if I were you.
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?
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.
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.
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!
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
Get out of my Head Ryde!
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.
Job title: reviewer of iPhone killers.
Should keep me in nachos and beer for a while.
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!
Now, Now be nice!
Realistic, unlike this article.
If what you did today added 4 years to your "relationship" then you're already planning on it ending and she's easily impressed.
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.
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?