In a letter to investors today, Canaccord Genuity reports, “Handset OEMs gaining smartphone market share continue to capture an even greater share of the handset industry’s overall operating profits. In fact, Apple generated a remarkable 47% value share of estimated Q3/10 handset industry operating profits with only 3.9% global handset market share.”
“Apple’s industry leading ASPs combined with a strong ramp in iPhone 4 unit sales resulted in Apple capturing roughly 22% of sales among the leading industry OEMs versus 16% in Q2/10 and 14% in Q3/09. Due to Apple’s strong share gains, most other OEMs lost total sales market share and more importantly operating profit value share,” Canaccord Genuity reports. “Due to improving profitability levels by its competitors during Q3/10, Research in Motion appeared to lose the most operating profit value share from Q2/10 levels as RIM’s value share declined from 25% in Q2/10 to 18% in Q3/10.”
Canaccord Genuity reports, “Apple posted strong September quarter results, driven by continued strong demand for the iPhone 4. While iPad sales of 4.2M were slightly below our estimate, we anticipate strong holiday season sales with growing distribution and launches in additional markets. Based on our expectations for solid sell-through of the iPhone 4 and the iPad this holiday season, we reiterate our BUY rating.”
“We anticipate continued strong sales trends for the iPhone 4 as Apple potentially launches the iPhone 4 at Verizon in Q1/11 and it transitions from single carrier to multi-carrier relationships in other countries (for example Germany). In fact, Apple now sells the iPhone 4 at a 166 carriers and in more than 85 countries, with plans to launch in additional markets in C2011,” Canaccord Genuity reports. “Further, we believe the iPhone 4 is also gaining share from RIM in the enterprise market. Management indicated roughly 85% of the Fortune 100 companies are either trialing or deploying the iPhone 4 including companies such as Pfizer, General Electric, All State, Cardinal and others. Apple sold 14.1M iPhone units in the September quarter versus RIM’s 12.1M units sold in its quarter ended August 2010. Given the strong iPhone 4 results, we increased our C2010 iPhone unit sales estimate from 41M to 47M and our C2011 iPhone estimate from 58M to 73M.”
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