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  • iPhone Dominates Smartphone Profits


    Ever since the release of Apple's iPhone sales have been beyond what anyone could have ever hoped for. Estimates now have Apple having:
    8% of all mobile phone revenue and a whopping 32% of the industry's handset profits.
    In the first 2 quarters of 2009 Apple has been estimated to have earned around $5 billion in operating revenue, $2 billion of which is profit. The high profit margin of their products allowed them to over take Nokia as the 2nd most profitable smartphone company.

    Since these estimates only consider the first two quarters of the year 2009, the sales were shown to drop off towards the time of the announcement of the new iPhone and the estimates just barely take into account the rush of sales from the release of the newest iPhone, the iPhone 3GS. Estimates towards the end of the year would show the full effects of the release of the new iPhone.

    The real question is, how did Apple, a nobody in the smartphone market, over take the Goliaths of the market with a product that is only 3 generations old? The strategy was similar to that of the iPod. Seamlessly integrating it with iTunes and the AppStore, the iPhone was able to differentiate itself from other smartphones by having a work and a play side to it. The AppStore also created a:
    formidable smartphone ecosystem, which history suggests is very difficult to overcome
    .

    Sources:
    Apple iPhone Dominates Smartphone Profits | John Paczkowski | Digital Daily | AllThingsD
    AppleInsider | Report: iPhone grabs 32% of global handset profits
    This article was originally published in forum thread: iPhone Dominates Smartphone Profits started by NeoNightmareX View original post
    Comments 17 Comments
    1. Poseidon79's Avatar
      Poseidon79 -
      Nice write up! Moved to front page
    1. Zeal's Avatar
      Zeal -
      Not surprised at ALL.
    1. StealthBravo's Avatar
      StealthBravo -
      Very nice
    1. Napoleon_PhoneApart's Avatar
      Napoleon_PhoneApart -
      Is there a listing for Palm in there somewhere?
    1. choihyun's Avatar
      choihyun -
      go iphone
    1. leorimolo's Avatar
      leorimolo -
      Quote Originally Posted by napoleon_phoneapart View Post
      is there a listing for palm in there somewhere?
      rimm
    1. apere006's Avatar
      apere006 -
      Im not sure about these numbers. Apple most likely does include alot of costs that are related to their computer business.
    1. Melech518's Avatar
      Melech518 -
      Thats what I like to hear!!! I keep making more and more money with this Apple stock...Gotta Love it!
    1. NeoNightmareX's Avatar
      NeoNightmareX -
      I need to buy some stock in Apple. That would be a good way to make some $ on the side.
    1. Melech518's Avatar
      Melech518 -
      I was down almost $30,000 last year with my apple stock, Im back up on top now baby
    1. tudtran's Avatar
      tudtran -
      My god when will the iphone be free with a new contract
    1. NeoNightmareX's Avatar
      NeoNightmareX -
      When will people stop liking money?
    1. rwin84's Avatar
      rwin84 -
      Apple is a Monster. cha-ching $$$$
    1. GHOSTYAIRO's Avatar
      GHOSTYAIRO -
      I would like to buy some stocks, it's there a minimun amount that you can buy? I don't have so much money to invest but I'd like to know more about it, you guys with stocks experiencie, little help here please. Thanks.
    1. chrisj979's Avatar
      chrisj979 -
      Not to be an Apple hater cause I do have an iPhone, but I a really interested to see where how HTC stacks up against these numbers. Considering they are in every market, including China, and they are with most carriers.

      HTC is the only one I see coming close to competing, the palm will always have its fans, and Blackberry is more concerened with battery life, cause BBerry is pretty well set in in corporate america. But from the phones I have used, and boy have I had alot of phones, an HTC phone is the only one I would consider ditching my iPhone for.

      Honestly I will in about a week there are some features my iphone lacks that bug me because I am a power user when it comes to smartphone, I want it to work to it's full capability.

      One thing I miss is being able to use my phone as a thumb drive, I miss FULLY functional Bluetooth A2DP, i miss just copying some songs to the phone without going through a sync routine, I miss bluetoothing files fro one phone to another(for free), I miss MMS (not this MM-Mess on the iPhone).

      Sure I'll lose the app store and alot of useless apps I pile on my phone just to make it look cooler, but I'll gain a phone that meets all of my needs in a SMARTPHONE.

      Hmmmm.... I wonder how long it will be before I come back?????

      FYI phones I have had Razr, Treo, RIM 850, Blackberry(pearl, 8800, 8700, 7200, 7100, 8820, curve), Tilt, 8525, 8125, 3125, 2125, Dash, Wing, Sidekick, Behold, Touch Diamond, G1, and two other motorolas i forget the name of.

      Bottomm line I noticed HTC was left out and I am sure they have numbers "close" to Apples, the "rest of industry" catageory is vague and I do not think it includes HTC or Palm. But I have rambled long enough back to the topic.
    1. mdc929's Avatar
      mdc929 -
      ive had many phones and used many other people's phones, including "iPhone killers" and many of the new touchscreen phones and NONE really come close to what ive been able to get out of my iPhone, though it is admittedly lacking in a few areas. its not suprising that its dominating the market because these things are seen left and right, even here in Buffalo, one of the poorest cities in the country.
      if i knew anything about stocks i wouldve invested in apple as soon as the first gen iphone was announced because i knew this would change the smartphone market from jump
    1. supreme-livin's Avatar
      supreme-livin -
      nice
      apples takin over the world