Fueled by strong volumes, high wholesale prices and tight cost controls, the PC vendor has successfully broken into the mobile phone market in just two years.
Sarah Reedy reports for Telephony Online, “The firm estimates that Apple’s iPhone operating profit came in at $1.6 billion in Q3, while Nokia recorded only $1.1 billion in operating profit. ‘With strong volumes, high wholesale prices and tight cost controls, the PC vendor has successfully broken into the mobile phone market in just two years,’” said analyst Alex Spektor in the research note.”
Full article here.
MacDailyNews Take: Bloodbath.
[Thanks to MacDailyNews Reader “Mike in Helsinki” for the heads up.]
Nokia no-see-ah it coming!
What was Balmer’s quote again? Something about being very happy with their mobile strategy.
The article say Nokia has 37% of the market
What is Apples share?
“We’ve learned and struggled for a few years here figuring out how to make a decent phone. PC guys are not going to just figure this out. They’re not going to just walk in.”
Said Ed Colligan (Palm CEO at the time) exactly three years ago (about the iPhone). I never get tired of that quote.
(Laughing) “FIVE HUNDRED DOLLARS? Fully subsidised? with a plan I said that’s the most expensive phone in the world (still laughing) and it doesn’t appeal to business customers because it doesn’t have a keyboard
[sic] which makes it not a very good email machine”
Steve Ballmer, January 2007 (less than 3 years ago). Another memorable quote…
“What is Apples share?”
It’s not about that. It’s all about how much profit Apple makes.
You can take how much you have to sell. I’ll take the bigger profit any day.
hotinplaya:
Nokia’s share is for all cellphones (including throw-away, free-with-any-plan dumb phones). In that all-inclusive market, Apple cracked 2.5% not long ago. Among smartphones, the order is:
Nokia (around 41%)
RIM (some 20%)
iPhone (some 16%)
WinMobile, Android, etc are in single digits (WinMob around 9% and so on).
@hotinplaya
Apple’s share was around 18% according to this.
@ron
I am total agreement, just thought it would be a nice comparison to have
“Nokia has 37% of the cell market, and Apple makes more $$ with only ?% of the market”
In other words, Nokia is Dell of the mobile telephony. Sells tons of phones with an average of $1.20 profit on each.
Meanwhile, Apple sells less than that, but with some $380 profit on each.
(and the numbers aren’t all that exaggerated)
Thanks guys! any way you look at it
16/41 smartphone, or 2.5/37 cellphones
bet not many people (other than us) saw that coming!!
I expect Ballmer’s furniture is right now trying to figure out where best to hide before he shows up. Personally, I think they would be safest in research development, and would definitely want to stay out of the cafeteria until this blows over (it should be a short 2 or 3 years)
On this news I’m certain Ballmer couldn’t be happier. Let MAC secure the 1 – 2% of the overpriced toy phone market for smug, pretentious technophobes. So a bunch of cultists like to waste money. Whatever.
Microsoft and their innovative partners are delighted to offer a feature-packed low-cost alternative for both Joe Sixpack and the enterprise. Talk about a bloodbath. Windows Mobile 7 will decimate the Pre, Android, Blackberry and especially I-Phone also-rans. I bet they all wish they had Mobile Internet Explorer now.
Your potential. Our passion.™
“I expect Ballmer’s furniture is right now trying to figure out where best to hide before he shows up.”
That was funny.
How stupid is zune tang lol
Well you see Micosoft is owned by sharholders who want a return on there investment.
You will probably see now that other handset manufacturers will follow Apple Handset business model higher prices larger profit happier sharholders.
Sharholders will demand this soon so be prepared for the handset market to change forever!!!!
Tang is a fish right? Zune tang is a fish lol lol
Isn’t it funny how Mac fans all celebrate how profitable Apple is and cheer their profit margins? I mean, I totally get it, but I cannot imagine people cheering on Dell for example. Or Ford or the local grocery store.
I understand the whole reasoning behind it. Hell, I just ordered a 27 i7 and have 4 iPhones, but most people would never be that excited that a company that they buy products from is making record profits with billions in the bank. Unless they had stock of course. Apple has proven that if you make a superior product, people will pay more for it.
The next time my wife bitches about the cost of groceries I’ll just tell her, “Look at the bright side honey, Safeway is making more money than all of the other grocery stores combined!”
iPhoner:
There is a very good reasoning behind Apple fandom. Unlike any other maker, Apple’s products connect with their user on an emotional level. Add to that constant disparaging barrage from those who dislike the company and ridicule users of its products, and you can see how we, Apple owners take pleasure in success of our favourite company.
Apple went through some perilous times in mid-90s, and it was somewhat scary to own Apple products, not knowing if developers will continue to support the platform. Therefore, continued health and prosperity of the company guarantees continued prosperity of the platform(s) and continued stream of quality software.
Neither Dell, nor Ford, nor Safeway could ever produce such an emotional connection with their products. There is a reason why we will never see dellrumours.com, or fordinsider.com.
Zune Tang’s tongue is securely in his cheek.
Pretty obvious to those of us who’ve been here more than a month, I would think…
Us Apple Zealots drink the “kool aid” they say. But no “kool aid” for Microsoft Addicts – instead, they chug-a-lug some TANG…
Flavored with (shudder!) Zune! Ugh.
Zune Tang, don’t ever stop.
@Lol
Tang is an orange-flavored, powdered drink mix that NASA took on the Gemini missions. It would make sense with a name like Zune Tang. He must be from outer space.
Sadly, I don’t think Microsoft’s WinMo software division actually makes a profit. Sad, given how long they’ve been around. I mean, they shipped 18M licenses last year, at about $15 a pop for roughly $270M in revenues. Their software development costs must exceed that amount. And, this year, they’re on pace to ship only 13M licenses for about $200M in sales. Actually, it might be far less seeing as they may be paying companies to put WinMo on their handsets. Didn’t they sign a deal with LG to put WinMo on 50 of their handsets? Usually, that kind of deal means MS is paying the OEM, not the other way around.
So, while Ballmer’s strategy, which he likes may be netting about $200M in sales, Apple’s strategy which he mocks may have netted Apple $12B last year, or about 60x more than MS.
Pedrag, you are right, in the 80s and in the 90s and even in the 00s, I took a lot of ridicule and abuse and humiliation, just for using “non-mainstream” tech products like the Macintosh … which is why I come to MDN lately to get some
REVENGE
“The best revenge is not Living Well; the best revenge is Revenge.”
I wonder if Stupid Ballmer, still likes his Strategy
“the PC vendor has successfully broken into the mobile phone market in just two years.”
Apple successfully broke onto the mobile phone market in just two minutes.
This is more like running over the market, backing up, and doing it again!
Not bad being tied to one cell vender. And then not even letting all ATT venders sell the iPhone.
Of course that’s (what I wrote above) just the U.S.
But that IS the biggest market in the world.