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  • Apple accounts for small market share, HUGE Profit shares

    Image Courtesy TheiPhoneBlog

    A report published by The Wall Street Journal claims while Apple and RIM together hold only a tiny 3% share of the mobile phone market, they hold a lion's share (35%) of its profits - iPhone alone taking up just 1% market share, and accounting for ~ 20% of the total profit!

    That's a huge setback to mobile phone giants like Nokia, Sony, LG etc. These all hold much big market shares (up to 60x) but account for much less profit.

    At least for iPhone's manufacturer Apple and BlackBerry's Research In Motion. The two accounted for only 3% of all cellphones sold in the world last year but 35% of operating profits, according to Deutsche Bank analyst Brian Modoff. The disparity will become even starker this year when, he estimates, the two will take 5% of the market in unit terms but 58% of total operating profits.
    The situation is such that Motorola, which once made the most sold phone ever is facing big losses, let alone profit. There is no sign of Palm here, maybe since their Pre has been launched roughly a month ago - but it would definitely be interesting to know if their so-called 'iPhone killer' did them any good or not.

    [WSJ via MacRumors]
    This article was originally published in forum thread: Apple accounts for small market share, HUGE Profit shares started by sayam View original post
    Comments 21 Comments
    1. A_DuB187's Avatar
      A_DuB187 -
      iPhone DOMINATES!!
    1. awesomeSlayer's Avatar
      awesomeSlayer -
    1. didupart13's Avatar
      didupart13 -
      i knew i should have invested my life's savings into apple!!
    1. TheOrioles33's Avatar
      TheOrioles33 -
      Pretty impressive considering they entered the smartphone market only 2 years ago.
    1. PlatoTheForms's Avatar
      PlatoTheForms -
      "Deutsche Bank analyst Brian Modoff"<---Fancy title
    1. LGgeek's Avatar
      LGgeek -
      The one axis that is missing on their chart is "length of time in market place". Just about everyone else has been at it for the last 10+ years.
    1. Melech518's Avatar
      Melech518 -
      I love having stock in Apple!! Mwahaha
    1. royalnewjersey's Avatar
      royalnewjersey -
    1. ifonemaniac's Avatar
      ifonemaniac -
      iPhone really gave them a zap. Seeing as that's the only apple product worth getting... Zing..
    1. StealthBravo's Avatar
      StealthBravo -
      ^ ummm...yea right
    1. buddyyou69's Avatar
      buddyyou69 -
    1. cpkirkley's Avatar
      cpkirkley -
      Motorola refuseed to embrace the future, and now theyre paying price. Same with Sony. They make top notch smartphones, but refuse to get off those horrible symbian/UIQ OSes. Anybody remember the p990? I would've traded in my girlfriend for one of those while I was in college.
    1. rwin84's Avatar
      rwin84 -
      Apple was looking for 1% market share and thats what they did. Go Apple! Im not being a fanboy but they set that goal over two years ago and have dessimated the competition with their market strategy. Not to mention a 48% grab on the smart phone market. This percentage is for all cell phones. Wrap your head around that!
    1. algojobathosai's Avatar
      algojobathosai -
      This means apple should give some sort of dividen to all iphone owner or amybe market cheaper iphone in the future....
    1. confucious's Avatar
      confucious -
      Let me get this straight, we are all happy that Apple are making lots of money out of us?
    1. algojobathosai's Avatar
      algojobathosai -
      Thats the problem....haha...I dont get it either....
    1. yowiphone's Avatar
      yowiphone -
      Quote Originally Posted by confucious View Post
      Let me get this straight, we are all happy that Apple are making lots of money out of us?
      Yeah if you have invested in AAPL.

      But if your just an ordinary owner then it doesn't matter to you.
    1. rickymrtn93's Avatar
      rickymrtn93 -
      3%? I didn't know that Apple and RIM shares only 3%. There is something more to know about this. Many information are missing.
    1. confucious's Avatar
      confucious -
      Why does that surprise you? They hold a much bigger percentage of SmartPhones but the vast majority of mobile phones are just phones.
    1. CZroe's Avatar
      CZroe -
      I don't get it... the graphic clearly shows that Apple has 20% of the industry's profits, not 35%. Even if it did show 35% then Nokia, not Apple, has the "lion's share" of profits with over 45%.