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


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.


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.

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Buyer's Guide: iPhone (Neutral)


Top Rated Comments

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74 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.
Rating: 8 Votes
74 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.
Rating: 7 Votes
74 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.
Rating: 7 Votes
74 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! :)
Rating: 5 Votes
74 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.
Rating: 5 Votes
74 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.
Rating: 4 Votes
74 months ago

If you have an iPhone and a little bit of APPL stock, you're probably not even getting your own "profitshare" back over a 2 year contract.

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

What does the stock symbol for Appell Petroleum have to do with smartphones?

:p
Rating: 3 Votes
74 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.


They make amazing products that people are happy to pay for. This supports the notion that people will pay for quality products and quality support.

Not every business needs to race to the bottom and become a generic commodity maker that is barely profitable.

Apples profitability allows them to create more amazing things for their customers.

The real question is why does an apple hater like yourself keep posting on an apple related forum.

By the way apples obligation is to its shareholders and they have the happiest shareholders around. Apple does realize quality leads to happy customers and profits which lead to happy shareholders.
Rating: 3 Votes
74 months ago

So basically, if you're an Apple shareholder, but not an iPhone customer, then this is great news.


Actually, you pay about the same price for an iPhone vs Android phone.

The only difference is companies that make Android phones get much less money from the carrier.
Rating: 3 Votes
74 months ago

Thats fine for the nontechie, nonmacrumors resident. But what about people on this site, who are technically inclined? We know, since we are informed.. that apple does NOT provide the best internals or at least not anything better than the competition...

so why should we be "ok" with paying a premium for parts and product, us in the KNOW, know that they are inferior?

People claim apple is so innovative, why sell us short?


iOS is part of those internals and is easily, IMO, the best part available and is substantially better than the competition.
Rating: 2 Votes

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