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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.





By Electronista Staff
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Comments

  1. lkrupp

    Junior Member

    Joined: May 2001

    +6

    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.

  1. aussiearn

    Fresh-Faced Recruit

    Joined: Jan 2011

    +6

    Androids share

    Androids Marketshare is split how many ways??? LOL

  1. viktorob

    Fresh-Faced Recruit

    Joined: May 2011

    +3

    But But...

    But Android has overtaken apple in market share.... lol
    You better have learn you lesson well, market share is not everything..

  1. chas_m

    Moderator

    Joined: Aug 2001

    +3

    Hole-eee-c***!

    Two-thirds of the profits in the entire cellphone business. AND now the most popular brand of smartphone. In under five years.

  1. BaiGanyo

    Fresh-Faced Recruit

    Joined: Feb 2011

    -4

    If you believe this, you need help

    This is the dumbest story I've read lately. It's not true, and no one with a brain could possibly believe it. Apple's market share in the world is less than 6%. They simply don't make 2/3 of the profit. It's not possible, and someone has misinterpreted some data and made up some graphics to go along with it, but it still doesn't make it true at all.

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