Apple's Profit Share Among Top Mobile Phone Vendors Rises to 66%

phone profit share 2q11 bar
Apple's share of profits raked in by the world's top publicly-traded mobile phone vendors rose once again this quarter, as asymco's Horace Dediu notes in the latest edition of his quarterly tracking reports. According to Dediu's calculations, Apple's share of profits among the eight companies tracked rose to 66%, up from 57% last quarter.

This quarter saw a slight sequential decline in overall profit for the sector, but four vendors did not manage a profit from selling phones. Nokia, Motorola, Sony-Ericsson and LG all saw losses. The other vendors split the slightly decreased pie with Apple getting two thirds of it (66.3%)

This share is up from 57% in Q1 and 50% in Q3 and Q4. Samsung’s share went to 15%, though that’s not a peak level historically. In Q1 2008 the company was at 21%. RIM was at 11%, a level in a range that has been unchanged for three years. Finally, HTC captured 7.4%, a new high and an increase from 6% since last quarter.

Dediu notes that smartphones have become the primary driver of mobile phone vendor profitability, giving Apple a significant edge over most of the competition with its smartphone-only offerings.

phone profit share 2q11 line
Apple first grabbed the profit share lead from Nokia way back in the fourth quarter of 2008, and hit the 50% mark a year ago in the third quarter of 2010. Apple of course only holds about 5.6% unit share in the total mobile phone market, but earns much more profit on its premium-priced iPhones than other vendors do with their offerings.

Top Rated Comments

chrono1081 Avatar
124 months ago

Wouldn't it be nice if they lowered their prices a bit instead of lining their pockets? Now that would be something to praise them for, not this idiotic bragging about how much money they make. Why don't most Apple customers think like normal consumers? All they think about is, I want Apple to make lots of money? Strange.


That is the most ridiculous thing I keep hearing from people that have no idea what goes on in the world. Seriously no one, not ONE single person just throws their money at Apple because they want Apple to make money.

People buy Apple products because, dare I say it, they are GOOD products! People don't just buy Apple because its Apple. That idea is nothing but a myth stirred up by the people who hate Apple and its users for no reason.

By your same token of thought I could say that people who buy MS products because they enjoy them throw their money at MS only because they want MS to succeed. Doesn't make much sense when you reverse it does it?

I am just sick of these comments, its all thats on Macrumors anymore.
Score: 8 Votes (Like | Disagree)
*LTD* Avatar
124 months ago

All they think about is, I want Apple to make lots of money? Strange.

I just wanted an iPhone, dude.

I kinda figured I'd have to pay money to get one.

I didn't realize paying for stuff wasn't cool.
Score: 7 Votes (Like | Disagree)
foodog Avatar
124 months ago

Wouldn't it be nice if they lowered their prices a bit instead of lining their pockets? Now that would be something to praise them for, not this idiotic bragging about how much money they make. Why don't most Apple customers think like normal consumers? All they think about is, I want Apple to make lots of money? Strange.


Companies are in business to make as much money as they can.... that is the point.
Score: 7 Votes (Like | Disagree)
rayray5884 Avatar
124 months ago

Wouldn't it be nice if they lowered their prices a bit instead of lining their pockets? Now that would be something to praise them for, not this idiotic bragging about how much money they make. Why don't most Apple customers think like normal consumers? All they think about is, I want Apple to make lots of money? Strange.


My previous, and first laptop, was a Dell. It gave me a ton of grief. My previous, and first router, was a Linksys. It gave me a ton of grief. My previous phones were Nokia, Sanyo, and Samsung flip phones. They worked as dumb phones but their firmware was never updated despite regular bugs in the software. Support for hardware issues was a pain because most stores weren't 'corporate' stores and could not swap out your phone for a new one at the time.

I now have a MacBook (early '08), an iPhone 3G and 4, an Airport Extreme, and an iPad 2. They give me as close to zero grief as one could hope for. I'm not simply 'lining their pockets', I'm paying for a quality product that is well designed and supported just as well. To me it's worth it.
Score: 5 Votes (Like | Disagree)
nagromme Avatar
124 months ago

If you have an iPhone and no APPL stock, you're paying a huge premium to be part of the club.

Clarification needed: what huge premium is that, exactly? Are there phones as good as the iPhone 4, with as good a screen and camera and the same selection/quality of apps, and the same ease of use and battery life, or even other features that truly compensate for lacking those... and that cost a “huge” amount less? What does that huge amount come to per month, spread over 2-3 years?

I’d hate to think I was paying for a “club” and not for the apps and OS and hardware that are serving me so amazingly well, compared to the frustrations and “good enough I guess” experiences I see Android users constantly facing. (Seriously, I can’t even reach them half the time because their batteries are dead! And their handsets keep being made obsolete and receiving no further updates WAY too early.)

I wonder... maybe Apple gets great manufacturing/component deals, rather than simply overpricing... nah. Crazy talk! :)
Score: 5 Votes (Like | Disagree)
fertilized-egg Avatar
124 months ago


Pretty good marketing to be able to convince users that a company making 50+% profit on every sale is good for the users of that product.
...If you have an iPhone and no APPL stock, you're paying a huge premium to be part of the club.
...
This doesn't "drive innovation" so much as it drives up dividends for rich people.


Using the same logic, you're getting a great deal if you own an LG or a Nokia device?

For iOS users it's still a great news even if they don't own Apple stock because it guarantees the company will stay afloat and there'll be active development and support on the products and the platform.
Score: 4 Votes (Like | Disagree)

Top Stories

16inchmacbookpromain

Kuo: New MacBook Pro Models to Feature Flat-Edged Design, MagSafe, No Touch Bar and More Ports

Thursday January 14, 2021 9:32 pm PST by
Apple is working on two new MacBook Pro models that will feature significant design changes, well-respected Apple analyst Ming-Chi Kuo said today in a note to investors that was obtained by MacRumors. According to Kuo, Apple is developing two models in 14 and 16-inch size options. The new MacBook Pro machines will feature a flat-edged design, which Kuo describes as "similar to the iPhone 12" ...
foldable iPhone concept feature

Apple Testing In-Display Fingerprint Sensor for iPhone 13, Foldable iPhone Also in the Works

Friday January 15, 2021 1:46 pm PST by
Apple has started "early work" on an iPhone that has a foldable display, according to a new report from Bloomberg's Mark Gurman. Though testing of a foldable iPhone has begun, Apple has not committed to releasing a device that has a foldable display. Development has not yet expanded beyond a display and Apple does not have full foldable iPhone prototypes in its labs. Like foldable...
iphone x camera close

iOS 14.4 Will Introduce Warning on iPhones With Non-Genuine Cameras

Thursday January 14, 2021 8:07 am PST by
In the second beta of iOS 14.4 seeded to developers and public testers this week, MacRumors contributor Steve Moser has discovered code indicating that Apple will be introducing a new warning on iPhones that have had their camera repaired or replaced with aftermarket components rather than genuine Apple components. "Unable to verify this iPhone has a genuine Apple camera," the message will...
iP12 charge airpods feature 2

Hidden iPhone 12 Hardware Feature Could Still be Unlocked

Thursday January 14, 2021 2:51 am PST by
All iPhone 12 and iPhone 12 Pro models purportedly have a hidden reverse wireless charging feature, according to an FCC filing. The feature has not yet been activated, but could yet be unlocked for an upcoming Apple accessory. The FCC filing suggests that iPhone 12 models contain the hardware for Wireless Power Transfer (WPT) to accessories: In addition to being able to be charged by a...
Top Stories 43 Feature

Top Stories: MacBook Pro, iMac, Mac Pro, and iPhone Rumors, Best of CES 2021

Saturday January 16, 2021 6:00 am PST by
This week was sure a busy one in the Apple world, with a flurry of announcements out of CES early in the week followed by a rash of Mac- and iPhone-related rumors later in the week. The new rumors this week included details on updated MacBook Pro, iMac, and Mac Pro models, as well as a few other tidbits, so make sure to read on below to get caught up! Kuo: New MacBook Pro Models to...
iphone 5s black slate

Images of Unreleased iPhone 5s in Black and Slate Shared Online

Sunday January 17, 2021 9:47 am PST by
Twitter user @DongleBookPro has today shared images of a prototype iPhone 5s in an unreleased Black and Slate color. The iPhone 5s was launched in September 2013. The device featured Touch ID, a 64-bit processor, and a True Tone LED flash for the first time. Other new features included a five-element lens with an f/2.2 aperture, a 15 percent larger camera sensor, Burst Mode, and Slo-Mo...
Apple TV Ray Light 2 Triad

Apple Extends Free Apple TV+ Trials Until July

Friday January 15, 2021 10:50 am PST by
Apple is once again planning to extend its free Apple TV+ trial subscriptions, this time until July. When Apple TV+ launched in November 2019, Apple offered free Apple TV+ subscriptions to those who purchased a new Apple device in or after September 2019. Those free subscriptions were set to expire in November 2020, but in October 2020, Apple announced that it was extending free trials...
pat gelsinger intel

Incoming Intel CEO Derides Company's Inability to 'Deliver Better Products' Than Apple's M1 Chip

Friday January 15, 2021 6:17 am PST by
Incoming Intel CEO Pat Gelsinger has said that the company must "deliver better products" than Apple, which he described as a "lifestyle company," and says that Intel's best days are "in front of it" (via The Oregonian). Speaking at an Intel all-hands meeting yesterday, Gelsinger derisively implied that Apple is merely a "lifestyle company," so Intel must be able to surpass its technology: ...
mac pro mini feature

Apple Working on Two New Mac Pro Desktops, One of Which Will Be Reminiscent of Power Mac G4 Cube

Friday January 15, 2021 10:23 am PST by
Apple is developing two versions of the Mac Pro to succeed the Mac Pro that was first released in December 2019, according to a new report from Bloomberg. The first updated Mac Pro is a direct successor to the current Mac Pro and it will use the same design. It may also be equipped with Intel processors rather than Apple silicon chips, and it could be one of the sole machines in the Mac...
macbook pro 16 inch thunderbolt

Bloomberg: Next-Generation MacBook Pro to Offer Improved Displays, Faster Charging Over MagSafe

Thursday January 14, 2021 11:36 pm PST by
Following today's report from analyst Ming-Chi Kuo outlining major changes for the next-generation MacBook Pro models coming in the third quarter of this year, Bloomberg's Mark Gurman has weighed in with his own report corroborating some of the details but seemingly differing a bit on others. First, Gurman shares more details on the return of MagSafe charging to the MacBook Pro, indicating...