Apple rakes in 71% of the world’s smartphone profits

“Even before Apple has announced the name or the shape of its next iPhone — expected to be unveiled by chief executive Tim Cook next Wednesday — analysts are certain that it is going to dominate the Christmas market in the US and, to a lesser extent, Europe,” Charles Arthur reports for The Guardian. “”Our target is for Apple to sell 50 million iPhones in the fourth quarter, of which 28 million will be the iPhone 5,” said Neil Mawston, executive director of research firm Strategy Analytics. That compares with 37 million iPhones in total in the same period a year before, of which Mawston reckons 20 million were the then-new iPhone 4S.”

“There is certainty that the “iPhone 5″ will have a larger, longer screen, thinner design, smaller SIM card, bigger battery and new connector; it is also expected to offer high-speed 4G/LTE wireless broadband, a step up from the 3G first added to the iPhone in 2008,” Arthur reports. “What isn’t known is what the “rabbit in the hat” — the surprise extra — will be. Two years ago it was the high-quality ‘retina’ display; last year, the “Siri” voice recognition system. ‘I wouldn’t be surprised if they come up with some kind of service that differentiates them from the rest and which consumers value,’ says Francisco Jeronimo, smartphones analyst for researchers IDC. The latest reports suggest some sort of music-streaming service, at least in the US, to rival Spotify and Pandora.”

Arthur reports, “Apple collects 71% of the world’s smartphone profits, analysts reckon. Even though Samsung ships the most phones, it takes 37%; Taiwan’s HTC gets 1%. (That total exceeds 100% because it’s offset by losses at Nokia, BlackBerry-maker RIM, Motorola, Sony, LG and others.)”

Read more in the full article here.

[Attribution: Forbes. Thanks to MacDailyNews Readers “Fred Mertz” and “chris” for the heads up.]

24 Comments

  1. Market share ….. But not …….

    Market dominance ……..

    9 mice and one big ass cat in a room ….. Who has share and dominance ……

    When the cat gets hungry, who will win!

  2. I think Apple should kill off the competition. They have enough money. They should reduce their profit margin to 5% and put everything on indefinite sale. They will make just as much money because volumes will increase.

    1. That is antithetical to the apple ideal. The very thing that has always set apple apart: make good products and reap good margins.

      Apple saying “I drink your milkshake” should be more like it.

    2. Going for market share is a sure fire way to losing dominance.
      Compaq did it
      Dell did it
      HP are doing it
      Look where is got them.

      Apple dominated the music player market by controlling component supply and pricing.
      They are doing the same with phones.
      Even as copy cat tablets are coming on the market apple will stymie their growth and profit by controlling component cost.
      Samsung does has an advantage over other manufacturers because they make a lot of the components themselves. However apple is working hard to bring other suppliers up to speed to reduce that advantage.
      The war is not over but apple have the proven record to sustain dominance.

  3. Nonsense Apple need not popularity nor market share.
    Apple has survived thru thick ad thick due to LOYAL supporters who loved the Apple ideals.
    Great tested products!
    Just hope Apple won’t fall into a greedy corporate culture that is the downfall of most other companies … Microsoft to name one!

  4. Yeah, good ol’ market share. The thing that Apple and the iPhone is losing out on. It makes the hedge funds nervous that Apple is losing a battle from which it can never recover. Hell! 1.3 million Android activations a day vs, say maybe, .4 million iPhone activations a day. The gap grows huger by the day and the analysts groan about what Apple absolutely needs to do to keep pace. Should Apple come out with a $50 iPhone that everyone on the globe can afford?

    There is absolutely nothing Apple can do to fight those sort of numbers, so there’s no point in worrying about it. All Apple needs to do is to continue doing what it’s already doing. Building the best smartphones and ecosytem in existence and treating its customers like gold. As long as there is a halfway decent world economy that business model will continue to work for Apple no matter how many millions of Android activations there are a day. Everyone in the world will not switch to Android and Apple will continue to have a loyal customer base. A vendor like Apple will have the greatest economies of scale with such a small product line that it will put other companies to shame.

    I don’t care how much analysts and hedge fund managers downplay Apple’s future, I think they’re wrong. I don’t foresee consumers jumping ship to other platforms just because they might be cheaper. Apple can afford the technnology to stay ahead of the rest of the tech industry and it already has the loyal customers willing to pay for it. If Apple can get the smaller iPads into the education system, it should create another iPhone-revenue type of product.

    1. I concur. When the iPhone was released, the majority of cell phone sales were “feature” phones, dumb phones with cameras and, often, keyboards. Samsung, HTC, and others copied the touchscreen look (but not functionality) with a follow-on generation of feature phones. I have one of those pieces of crap – a Samsung Gravity T. It is, without a doubt, the worst cell phone that I have ever owned. It would be far more useful without a touch screen, because the touch screen is so incredibly awful. With the next generation HTC and, in particular, Samsung copied enough of the iPhone design to make decent products in combination with the maturation of the Android OS. But most Android phones are still just glorified feature phones of yesteryear. They look like smartphones, but few attempt to use them as smartphones. Only Samsung’s flagship models approach the utility and sleekness of the iPhone, and then only because years of slavish copying has finally borne some fruit. I hope that Apple’s lawsuit takes some of the steam out of those devices.

      I hear lots of noise from fandroids, but I don’t see a strong incentive for people to leave the iPhone or to choose Android over iOS. There is not a significant cost advantage for Android because most of the cost of owning a smartphone is wrapped up in the data contract, which costs the same. The flagship Samsung phones have roughly the same initial purchase cost as an iPhone 4S (soon to be 5), so there is really no cost incentive. Even at the low end there is no incentive, with the 3GS and 4 (soon to be the 4 and 4S) discounted to compete with the Android bottom dwellers.

      As long as Apple is reaping the lion’s share of smartphone profits, just keep smiling.

  5. If competitors laughed and poked fun at your iPhone gen 1 and tell the world that it is never going to work and then sit on their thumbs, then they deserve to lose when Apple shortly created an entire ecosystem that the competitors failed to see & to take action upon. That is their problem in lack of vision, literally.

    They may lose for decades as the creator of the iPhone ecosystem simply out-inovates. It is not like Apple cheated to get where it is. It is not like Apple boughtout all competitors or similar to create a “monopoly”.

    Apple has what they have because of one man’s vision, starting with the Next OS and programming structures, back in the “Post Jobs Dark Ages” at Apple leading to the start of “The Post PC Era.”

    Apple bought Next, which other companies considered virtually worthless. How bad they judged the value.

  6. apple can gain mighty MARKET SHARE..

    … if they stood on the street and gave phones out for free or like Motorola lose money 14 out of 16 quarters
    or like Amazon make 7 million net profit (last quarter) vs 8800 million apple
    or like Google making 550 million off android since 2008 while spending 12500 million to buy Motorola

    My Dad : “you can get friends if you stood on the street corner and gave $5 to everyone you meet but do you want ‘friends’ like that?”

  7. If increasing marketshare gets you more money, then great. But Marketshare without profit is stupid.

    Only Android Fans think working 100 hours at minimal wage is better than working 20 hours to make 6 figure salary. I would rather work less and make more, and I think Apple gets that.

  8. market share without profit is eating soup with a fork .
    apple has the share that counts read it at the top 3/4 of all the profit that was made in the sector ! what idiot came up with the idea that selling at a loss to more people will make you rich? (oh yea Mit Romney)

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