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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.
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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
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.
I kinda figured I'd have to pay money to get one.
I didn't realize paying for stuff wasn't cool.
Companies are in business to make as much money as they can.... that is the point.
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.
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! :)
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.