Apple accounts for small market share, HUGE Profit shares

**sayam** · 07-20-2009, 11:20 AM

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]

**A_DuB187** · 07-20-2009, 11:34 AM

iPhone DOMINATES!!

**awesomeSlayer** · 07-20-2009, 11:36 AM

Nice

**didupart13** · 07-20-2009, 11:58 AM

i knew i should have invested my life's savings into apple!!

**TheOrioles33** · 07-20-2009, 12:22 PM

Pretty impressive considering they entered the smartphone market only 2 years ago.

**PlatoTheForms** · 07-20-2009, 12:25 PM

"Deutsche Bank analyst Brian Modoff"<---Fancy title

**LGgeek** · 07-20-2009, 12:26 PM

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.

**Melech518** · 07-20-2009, 12:38 PM

I love having stock in Apple!! Mwahaha

**royalnewjersey** · 07-20-2009, 12:56 PM

cool?

**ifonemaniac** · 07-20-2009, 01:27 PM

iPhone really gave them a zap. Seeing as that's the only apple product worth getting... Zing..

**StealthBravo** · 07-20-2009, 01:36 PM

^ ummm...yea right

**buddyyou69** · 07-20-2009, 03:32 PM

figures...

**cpkirkley** · 07-20-2009, 08:42 PM

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.

**rwin84** · 07-20-2009, 10:35 PM

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!

**algojobathosai** · 07-21-2009, 02:35 AM

This means apple should give some sort of dividen to all iphone owner or amybe market cheaper iphone in the future....

**confucious** · 07-21-2009, 04:31 AM

Let me get this straight, we are all happy that Apple are making lots of money out of us?

**algojobathosai** · 07-21-2009, 05:45 AM

Thats the problem....haha...I dont get it either....

**yowiphone** · 07-21-2009, 08:31 PM

Originally Posted by confucious

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.

**rickymrtn93** · 07-22-2009, 01:52 AM

3%? I didn't know that Apple and RIM shares only 3%. There is something more to know about this. Many information are missing.

**confucious** · 07-22-2009, 01:55 AM

Why does that surprise you? They hold a much bigger percentage of SmartPhones but the vast majority of mobile phones are just phones.

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