Apple has 8.7% of the mobile phone market, 75% of the profits

apple-profits

Apple continues its dominance when it comes to the world of mobile devices. The Cupertino-based company’s iPhone share of the market in terms of units shipped has grown from 3 percent in the second quarter of 2010 to 8.7 percent last quarter, according to Asymco‘s Horace Dediu. Even more impressive is that Apple’s profits in this space have risen from 39 percent to 75 percent. Wow.

Of course, what’s great news for Apple is horrible news for other manufacturers, as Dediu’s chart of the eight largest OEMs above shows a vast difference in cash-flow. It turns out that Apple is eating everyone’s lunch when it comes to profits, with only five phone makers seeing any kind of profit at all in the mobile phone business. The only company that’s even remotely challenging Apple is rival Samsung, with a 16 percent profit share, while all the others are either barely getting by or in the red.

That said, we must keep in mind this research is based off of all phones sold around the world, not just smartphones  — so the data is even more telling. Apple is a juggernaut in the mobile phone biz, it’s crushing companies which should have the advantage of using Android and Microsoft’s Windows Phone operating systems. And when it comes to profits, manufacturers are getting their clocks clean as the gap continues to widen.

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[via Forbes, Photo via Shutterfly, Sven Hoppe

  • Drew Nusser

    Is this not an indication that they overcharge for their phones?  Seriously, think about if they mixed their software with the hardware in the Galaxy S2 – that would be an amazing phone.

    • http://TheTrendaholic.com Charles West

      Great point.

    • Anonymous

      “Is this not an indication that they overcharge for their phones?”
      Based on high high satisfaction ratings, supply constraints, a near riot in china, rampant black marketing, I have to say their phones are way under priced.

      • Drew Nusser

        K, but they ARE charging the same amount for lesser hardware.  Are you saying you wouldn’t want an iPhone with a 4″ or bigger HD screen, a full gb of RAM, LTE, a faster processor, and a battery that lasts more than a day?  I know the iPhone is a great phone, but think of how much better it would be if it had the same specs of a high-end Android phone that costs the same amount.

        • Anonymous

          Hahahaha!!! Are you crazy? I wouldn’t want an iphone even if I can afford a million of them. But that’s beside the point. We are talking about pricing and it is not determined by the cost of components. It is determined by how much the market is willing to pay for the said product.  Based on this, I say the iphone is hugely underpriced. Nothing to do with android whatsoever. Everything to do with how crazy people are.

          • Drew Nusser

            I’ll agree with you there, but the same could be said about most high-end Android phones.  Samsung, Motorola, and LG are still selling more smart phones than Apple is.

          • Change of tides, Nautilus.

            I have to disagree with both of you, the Iphone is massively overpriced, the only reason it’s priced as is is due to fads and massive amounts of media. without that and with some pushing from other phone companies apple would be out of business. You put my GX2 next to an iphone 4s and let a couple of people walk around with them for a few days they’ll realize which is really better, the android for obvious reasons, an interchangable battery, non-propriatary system, plus i can change the operating system to whatever i want. All in all i wouldnt be willing to pay more than 20$ for iphone 4s.

  • Guilt Free

    Would Apple still be profitable if they didn’t exploit chinese working conditions? That NYT article was pretty bad.

    My phone was made in Finland by Nokia, and the parts came from Romania  So I am ok with my cell phone purchase. Are you?

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