Apple grabs two thirds of cellphone profits in spring
updated 03:10 pm EDT, Fri July 29, 2011
Asymco shows Apple at two thirds of mobile income
Apple's record spring quarter was enough to give it two thirds of the profits in the cellphone business. An analysis from Asymco shows that, while profit dropped slightly overall for the industry, Apple widened its share to 66.3 percent. Its stake was up from exactly half just this fall.
Android phone makers were up, but by smaller margins. HTC fared the best and was up from exactly six percent to 7.4 percent in just one season. Samsung was also up at 15 percent, but its proportion wasn't at an all-time high. BlackBerry maker RIM dropped to 11 percent.
Companies like Nokia, which lost money in the period, dragged down the numbers.
Apple's profit has come from its relatively high margins as well as a large ecosystem. Other companies often either have lower margins to start with or cut prices soon after launch.
The industry would have been profitable without Apple, but smartphones as a whole have become essential to succeeding. Only one company that also makes non-smartphones, Samsung, is still profitable, Asymco said. LG, Motorola, Nokia, and others now lose money as their basic feature phone businesses become liabilities. The companies succeeding the most are those who have focused the most on smartphones.





Junior Member
Joined: May 2001
Hmmm...
As an investor do I want market share or do I want the lion's share of the profits? Hmmm, let me think about that for a minute.