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  • Apple Accounts For 52% of Mobile Profits With 4% Market Share


    Apple is currently estimated to have taken 52% of the handset industry’s operating profits last quarter. This number comes in despite the Cupertino giant only having a 4.2% of the global handset market share. An analyst from Canaccord Genuity, T. Michael Walkley issued a note to investors on Friday in which he estimated Apple took more than half of the industry’s operating profits in the third quarter of 2011. This is a 5% increase from the third quarter last year, when Apple’s shared operating profits was 47%.

    What is a bit more surprising is Apple’s growth in profit share despite its loss in the market share. The iPhone was reported to dip from a 5.4% market share to its current 4.2% as Samsung estimated to have led the industry in smartphone shipments in the quarter, though its profits shrank.

    Looking back at where the iPhone once was to where it is now, Apple has made quite the climb. In 2007, Nokia had 67% of operating profits in the industry, while Apple and its iPhone represented just 4%. Four years later, Apple has switched places with Nokia, which now accounts for just 4% of operating profits. Apple’s main rival in the mobile industry is now Samsung, which currently seems to have scale advantages and the leading share of Android devices according to Walkley. Both companies combined represent 81% of the handset industry’s operating profits last quarter, quite the duopoly.

    These reports are all a part of the third quarter, which don’t account for all of the success the iPhone 4S has seen. According to Walkley who said that he has conducted “channel checks” the projected iPhone sales for the December Quarter have increased to 29 million, up from 27 million due to an increase in demand not only for Apple’s new iPhone 4S, but also for the lower-priced iPhone 4 and iPhone 3GS models.

    Many consumers are getting sucked into Apple products these days and with the prices being lowered,. There seems to be a whole new group of people that can now purchase iOS devices, who previously weren’t able to. For certain users, the ease of use and convenience of the older generation iOS devices often prevail when compared to other offerings in the same price range. In many cases, they even tend to outperform other models within the same price range as well. With the strength of the iPhone, and Apple’s industry leading profits, Canaccord Genuity has continued to maintain its buy rating for Apple (AAPL) stock and increased its price target to $560.

    The trend of Apple products becoming more popular and generating more profits seems to continue. Do you think any upcoming device will give Apple a run for its money? Or do you think this trend will continue with time? Share any thoughts below!

    Source: Forbes
    This article was originally published in forum thread: Apple Accounts For 52% of Mobile Profits With 4% Market Share started by Akshay Masand View original post
    Comments 10 Comments
    1. KraXik's Avatar
      KraXik -
      Lol good move US cellular. 👍
    1. RICO_'s Avatar
      RICO_ -
      Outstanding Apple! Now use some of that money and fix your damn product.
    1. sziklassy's Avatar
      sziklassy -
      Quote Originally Posted by KraXik View Post
      Lol good move US cellular. 
      It probably was a good move. Apple is making boatloads on every handset, something that US Cellular would have to subsidize.
    1. ohthatguyagain's Avatar
      ohthatguyagain -
      As much as I love Apple products, I was a PC guy for a while... That made me accustomed to at least looking at the competition. Truly, the Motorola Droid X and the Samsung Galaxy II are great phones. Nothing wrong with them, great functionality, great reception, etc...
      But it seems like there's still something special when it comes to one company making both hardware and software. That is Apple's biggest strength and core differentiation. That's why Apple will continue to be front-runners in ingenuity, innovation, and excellence.
    1. sziklassy's Avatar
      sziklassy -
      Quote Originally Posted by RICO_ View Post
      Outstanding Apple! Now use some of that money and fix your damn product.
      Can you be more specific?

      Quote Originally Posted by ohthatguyagain View Post
      As much as I love Apple products, I was a PC guy for a while... That made me accustomed to at least looking at the competition. Truly, the Motorola Droid X and the Samsung Galaxy II are great phones. Nothing wrong with them, great functionality, great reception, etc...
      But it seems like there's still something special when it comes to one company designingboth hardware and software. That is Apple's biggest strength and core differentiation. That's why Apple will continue to be front-runners in ingenuity, innovation, and excellence.
      Fixed that for you. AFAIK Apple doesn't make any hardware at all. They design their products and have things pieced together. Not trying to be smart here, just pointing out that they buy components from other manufacturers, which is much like what others do. Take their computers, for example. The hardware within are all parts that one could go out and buy and then build the computer themselves.
    1. Donnutt's Avatar
      Donnutt -
      Quote Originally Posted by sziklassy View Post
      Fixed that for you. AFAIK Apple doesn't make any hardware at all. They design their products and have things pieced together. Not trying to be smart here, just pointing out that they buy components from other manufacturers, which is much like what others do. Take their computers, for example. The hardware within are all parts that one could go out and buy and then build the computer themselves.
      Now that's just silly. In that case neither does Dell, HP, Acer, and generally anyone else who isn't Sony, Samsung, or LG. and those companies make displays primarily. No one PC company makes 100% of their product. They all buy from each other, design it themselves, and put their sticker on it. Apple designs much better than any of them. But, they ALL buy intel or AMD processors, ASUS motherboards, and Nvidea or ATI(now AMD) graphics cards.
    1. RICO_'s Avatar
      RICO_ -
      Quote Originally Posted by sziklassy View Post
      Can you be more specific?
      Widespread audio issues that recently cropped up.

      Siri still being in Beta form with spotty functionality and often laggy performance.

      Poor battery life from a phone that was supposed to have BETTER battery life....which isn't confined to a "small percentage" of people like Apple loves to play down.

      Take your pick.
    1. rkswat's Avatar
      rkswat -
      Guess this just goes to show how overpriced their products are.
    1. jeffs64's Avatar
      jeffs64 -
      Quote Originally Posted by rkswat View Post
      Guess this just goes to show how overpriced their products are.
      Does any one know if the apple store opens one houe early for iPhone sales like they did for iPads ?
    1. dannyben's Avatar
      dannyben -
      Conveniently left out of the article....
      Samsung sold 27.8 million smartphones compared to only 17.1m by Apple = 62.5% more
      Samsung's growth vs 3Q 2010 = 270% and marketshare growth = 156%
      Apple's growth vs 3Q 2010 = 21% and lost marketshare by 16%

      Also worth noting....All other smartphone mfgs saw a growth of 68% in shipments and 16.5% in marketshare. Global smartphone shipments have grown by 44% and FOUR TIMES of the buyers are purchasing an Android phones over an iPhone.