Apple Continues to Take More Than Half of Mobile Phone Industry Profits

Despite a sequential drop in iPhone sales in the third calendar quarter of 2011 as customers held out for the iPhone 4S, Apple once again seized over half of the profits generated by leading mobile phone manufacturers during the quarter, according to a new research report by Canaccord Genuity analyst T. Michael Walkley and shared by Forbes. According to the study's estimates, Apple raked in 52% of the overall profits during the quarter, down slightly from 57% in the second calendar quarter but up from 47% in the year-ago quarter that also had the then-new iPhone 4 on the market.

In an epic reversal of fortunes, Mr. Walkley pointed out that in 2007, Nokia had 67% of operating profits while Apple had just 4%. Today, while Apple has 52% of industry profits, Nokia has been relegated its rival’s former position with just 4% of operating profits.

As noted in a report from AllThingsD on the same research note, Walkley predicts that the launch of the iPhone 4S will spur even further growth for Apple, pushing the company to take over 60% of industry profits in the final calendar quarter of 2011.

cannacord 3q11 mobile profit shares
Walkley is not the only observer to routinely release estimates of mobile phone manufacturer profit shares, as asymco's Horace Dediu performs a similar analysis each quarter. Dediu's numbers have typically come in 5-10 percentage points higher for Apple than Walkley's estimates have, but the trends seen by each analyst are certainly consistent: Aside from some natural ebb and flow due to iPhone release cycles, Apple is continuing to increase its dominant share of mobile phone industry profits despite shipping only a small fraction of total units.

Update: Dediu has just posted his Q3 estimates, pegging Apple at 56% of industry profits.

Related Forum: iPhone

Top Rated Comments

Kaibelf Avatar
145 months ago
Blah blah blah but Android's better it's on more handsets blah blah blah people who call it cheap just don't understand and are sheep blah blah blah Apple's dying and will be out of business in 3 days blah blah blah we're not fragmented garbage and the next phone has a bigger screen so it'll change everything the same way the last 67 Android phones that came out this week did..... :rolleyes::apple::D
Score: 22 Votes (Like | Disagree)
C42D Avatar
145 months ago
"In an epic reversal of fortunes, Mr. Walkley pointed out that in 2007, Nokia had 67% of operating profits while Apple had just 4%. Today, while Apple has 52% of industry profits, Nokia has been relegated its rival’s former position with just 4% of operating profits."

OWN3D....
Score: 9 Votes (Like | Disagree)
marksman Avatar
145 months ago
Apple makes more money than all the android handset makers combined on smart phones.

Microsoft makes more money off Android than Google does...


The android business plan is really working out very well.
Score: 8 Votes (Like | Disagree)
miniConvert Avatar
145 months ago
It's funny how Apple fanatics get excited about Apple raking in profits(ie their money).
Not really. Such strong profitability demonstrates a secure, viable future, along with continued reinvestment in future products and the ecosystem. Apple doing well is a good thing for Apple customers, so long as the customers don't feel like they're being bent over a barrel on price.

And, from what I can tell, they don't.
Score: 6 Votes (Like | Disagree)
sazivad Avatar
145 months ago
Blah blah blah but Android's better it's on more handsets blah blah blah people who call it cheap just don't understand and are sheep blah blah blah Apple's dying and will be out of business in 3 days blah blah blah we're not fragmented garbage and the next phone has a bigger screen so it'll change everything the same way the last 67 Android phones that came out this week did..... :rolleyes::apple::D

This is pwnage.
Score: 6 Votes (Like | Disagree)
*LTD* Avatar
145 months ago
Pick those pockets clean!!!!

Consumers don't seem to mind paying (or paying more) for quality or when they perceive a better value proposition. All my Apple gear over the years has been worth every single cent.

There is very little buyers' remorse among Apple customers. Which is why they can command the level of brand loyalty they do. That takes a great deal of heard work, and it must be earned. Apple has earned my business, and they continue to earn it.
Score: 6 Votes (Like | Disagree)

Popular Stories

Emergency SOS via Satellite iPhone YT

Apple's iPhone 14 Emergency SOS via Satellite Feature Saves Stranded Man in Alaska

Thursday December 1, 2022 4:37 pm PST by
With the launch of iOS 16.1, Apple rolled out a Emergency SOS via Satellite, which is designed to allow iPhone 14 owners to contact emergency services using satellite connectivity when no cellular or WiFi connection is available. The feature was put to the test in Alaska today, when a man became stranded in a rural area. In the early hours of the morning on December 1, Alaska State Troopers ...
iPhone Measure Height

Newer iPhones Allow You to Measure Someone's Height Instantly — Here's How

Saturday December 3, 2022 10:23 am PST by
iPhone 12 Pro and Pro Max, iPhone 13 Pro and Pro Max, and iPhone 14 Pro and Pro Max models feature a LiDAR Scanner next to the rear camera that can be used to measure a person's height instantly in Apple's preinstalled Measure app. To measure a person's height, simply open the Measure app, point your iPhone at the person you want to measure, and make sure they are visible on the screen from...
General iOS 16 Feature Yellow

iOS 16.2 for iPhone Launching This Month With These 8 New Features

Thursday December 1, 2022 8:44 am PST by
Apple plans to publicly release iOS 16.2 for the iPhone in mid-December, according to Bloomberg's Mark Gurman. The update remains in beta testing for now, with at least eight new features and changes already uncovered so far. iOS 16.2 introduces a number of new features, including Apple's new whiteboard app Freeform, two new Lock Screen widgets for Sleep and Medications, the ability to hide...
iOS 16

When Will iOS 16.2 Be Released?

Friday December 2, 2022 2:13 pm PST by
Apple in late October began testing iOS 16.2 and iPadOS 16.2 updates, providing betas to both developers and public beta testers. As of now, we've had four total betas, with the fourth beta having been released earlier this week. iOS 16.2 and iPadOS 16.2 are expected before the end of the year, and we thought we'd try to narrow down the launch timeline. With only four betas released since...
14 vs 16 inch mbp m2 pro and max feature 1

Major RAM Upgrade Coming to Next-Generation MacBook Pro

Friday December 2, 2022 2:03 am PST by
The next-generation MacBook Pro models could feature faster RAM, according to a recent report from a reliable source. MacRumors Forums member "Amethyst," who accurately revealed details about the Mac Studio and Studio Display before those products were announced, recently provided information about Apple's upcoming 14- and 16-inch MacBook Pro models. The new machines are expected to feature...
iPad 10 Battery Pull Tabs

iPad 10 Teardown Reveals Why Device Isn't Compatible With Apple Pencil 2

Thursday December 1, 2022 10:48 am PST by
Do-it-yourself repair website iFixit today shared a video teardown of Apple's new 10th-generation iPad, providing a closer look inside the tablet and revealing why the device lacks support for the second-generation Apple Pencil. The teardown reveals the internal layout of the iPad, including its two-cell 7,606 mAh battery, logic board with the A14 Bionic chip, and more. As suspected, the...
android apple fix rcs

Google Again Criticizes Apple for Not Adopting RCS for Messages App: 'Their Texting is Stuck in the 1990s'

Friday December 2, 2022 10:54 am PST by
Google is continuing on with its attempt to convince Apple to adopt the RCS messaging standard, publishing a new "it's time for RCS" blog post. Promoted heavily by Google, RCS or Rich Communication Services is a messaging standard that is designed to replace the current SMS messaging standard. It provides support for higher resolution photos and videos, audio messages, and bigger file sizes, ...
ios 16 2 beta notifiation center

PSA: Older Notifications No Longer Hidden in Notification Center in iOS 16.2 Beta 4

Friday December 2, 2022 5:23 am PST by
In a small but significant change to the way the Notification Center works in the latest iOS 16.2 beta, older notifications are now shown by default without having to swipe up. In the current release as well as earlier versions of iOS 16, users do not automatically see older notifications in the Notification Center like they did in iOS 15, and instead must manually swipe up from the middle...
lastpass

LastPass Hacked for Second Time This Year

Friday December 2, 2022 4:04 am PST by
Password management app LastPass says it is investigating a security incident after an "unauthorized party" compromised its systems on Wednesday and gained access to some customer information. The information was stored in a third-party cloud service shared by LastPass and parent company GoTo, said LastPass CEO Karim Toubba in a blog post. Toubba said the hackers used information stolen from ...
Apple Card Savings

Apple Card Customer Agreement Updated for 'Upcoming' Savings Account Feature

Friday December 2, 2022 11:43 am PST by
Goldman Sachs this week updated its Apple Card customer agreement to reflect the credit card's upcoming Daily Cash savings account feature, which was expected to launch with iOS 16.1 but appears to have been delayed. "To enable new ways to use Daily Cash like the upcoming Savings account feature, we are updating the Daily Cash Program section of your Apple Card Customer Agreement," reads an...