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

February 3, 2012 by Charles West - 8 Comments

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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

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