“Canaccord Genuity initiated coverage of Apple (AAPL) Tuesday with a “buy” rating and a price target of $356 per share,” Phillip Elmer-Dewitt reports for Fortune.
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In a note to clients, T. Michael Walkley, their new Apple specialist, reveals that “Apple sold 17 million mobile handsets in the first half of 2010, compared with 400 million handsets sold by Nokia, Samsung and LG,” P.E.D. reports. “Yet it pulled in 39% of the industry’s profit during that period, more than the 32% earned by the world’s three largest handset makers combined.”
Full article, with nice pie chart illustrating the bloodbath, here.
MacDailyNews Take: Bain de sang.
An Apple a day keeps the posers away.
Does this means that Apple products are outrageously overpriced? Yes. But a Rolls-Royce is also outrageously overpriced.
So … Apple doesn’t make the best-selling cellphone. May not even be #2 or #3! How AWFUL for them. Close the doors and give the money, all that glorious green money, back to the … wait a minute! That’s a whole lot of profit settling in one basket. Let’s let a bit more settle before we close the doors, yeah?
Ya don’t have to be the best seller in order to make the most money. Make it up in volume, indeed! ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />
I might be missing something but that bottom pie chart has Apple at 39% and Nokia+Samsung+LG at 32%… That doesn’t add up to 100% as the pie chart apparently suggests, missing Others 29%.
This is a graphic for an article at CNN/Money?
There you go thinking logically again! Sheesh.
Bain de sang for that San Tropez Sturm Und Drang…..
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Apple gets it when it comes to selling the value of their products. Increased perceived value by the consumer means they will purchase a higher priced product. That’s why I have way too many Apple products, and gladly pay more for them. The other cell phone manufacturers are just selling commodity, low margin stuff, just like the PC manufacturers. Way to go, Steve!
MDN. Votre Francais est excellent.
Français (with a cedilla).
The original article has updated the charts. Probably read your comment.
So the other guys sell over 23 phones for each ONE that Apple sells, and still do not make as much money.
If Apple ever decided to engage in a price war we can say good bye to Dell, Nokia, RIMM, and Motorola.
Haha. Thanks, I just went there and looked too! They updated the pies. 😀 Strange they’d miss something like that.
I’m just a simple man, easily confused. B^P
The “Others” category sold slightly less than 50% of the total number of handsets from the “big three” and still almost equaled their share of the profit pie. At least the Others are only an order of magnitude worse than Apple. The trio of Nokia, Samsung, and LG are over 20 times worse.
Can’t agree with you. Apple products are not outrageously priced. Macs are more than PC’s, but not outrageously so. And this is about mobile phones and iPhone prices are in line with the wannabes.
Reality check for you:
Apple products aren’t outrageously overpriced. Everybody’s else’s products have outrageously horrible profit margins, or at least they do when they even have profit margins at all.
See, this is what happens when an industry competes on price. All it takes to dominate it is for one new player to enter the fray and begin competing on innovation and quality. That way, the new player can afford to have margins that don’t completely suck(since price is no longer the sole selling point), and consequently they conquer the entire industry overnight, sending everybody else to fight eachother for tablescraps down on the dirty floor like chihauhuas.
Apple would be in trouble if their “competition” ever developed common sense and started selling their products on innovation and quality, too, but that doesn’t appear to be in danger of happening. The rest of the handset industry, like the rest of the PC industry, seems to be perpetually lost in a haze of cluelessness.
I’ve always said that Android, RIM and NOKIA SMART phone market share numbers are skewed in that a lot of their phones are NOT TRUE super smart phones in iPhones category.
Over and over again we’ve read in various places that Android smart phones are overtaking Apple while Noka and RIM ‘smart’ phones outsells Apple by a wide margin.
‘Analysts’ count EVERY Android phone sold as a smartphone even Android ‘flip phones’ in China that can’t download apps. Every blackberry and every Nokia (self proclaimed) ‘smart’ phone’ even those that can barely browse the web much less use apps are counted.
If Rim, Nokia and Android is selling so many SMART phones (phones equal to the iPhone) why do their PROFITS suck?
I’ve always said it’s the OS that differentiates the computer and now this has transcended to the mobile phone too. The only two companies to be concerned with now are Microsoft, Google and (thanks to Palm) HP as they have an OS that interconnects and runs on different devices. Creating a seamless user experience. I’d put money on HP as the company to watch out for as they are in the beat position to emulate Apple’s approach.
Sorry I meant 3 companies not 2
LOL, this is so amazing!
No wonder Nokia got major problems.
Looks like other is at least holding close to its own (31% of units and 29% of profits) Apple it taking it all out of Nokia, Samsung and LGs hide. Maybe they haven’t heard that “Take a loss on every sale, but make it up in volume” is supposed to be taken as irony.