iPhone: Still not much market share, almost half of profit share

iPhone: Still not much market share, almost half the profit share

While Apple's iPhone still only accounts for about 4% of global phone market share they now rake in roughly 50% the profit share. Asymco has charts up for the top 8 mobile phone vendors broken down by market, sales and profit share and while Google's free Android OS has just crushed Nokia's Symbian in overall numbers I'd much rather have Apple's bank account. You?

[Asymco, Android Central]

Georgia

Senior Editor at iMore and a practicing therapist specializing in stress and anxiety. She speaks everywhere from conferences to corporations, hosts the ZEN & TECH podcast, and should be followed on Twitter @Georgia_Prime.

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iPhone: Still not much market share, almost half of profit share

31 Comments

Considering that over 60% of Apple's sales now come from iOS devices (with this number growing) and that Apple's iOS devices are seen as competitively priced I think it points more to Apple's ability to keep development and production costs down. As opposed to the likes of Nokia and Motorola that just keep churning out model after model, which must cost a fortune in support and retooling their production lines all the time amongst other things.

Even so, those production cost controls are not being passed on to the consumer, which speaks to Apple Greed.
I'm not sure an iPhone user gains any stature or bragging points by touting how much of an exorbitant price he paid. Its a twisted argument at best, and certainly an anti-customer practice by Apple.
I suspect at least half of the reason Apple's prices are so high is simply to limit demand to what they can reasonably manage. After all, they are still selling just about every phone they produce as fast as they can have them made for them, while Samsung, HTC, et all have to actually run their own factories and pay their workers a living wage.
Insisting on top quality parts and materials while limiting supply allows for huge profits. Its a money-making strategy that has worked well in the market where Apple was the first-est with the most-est (apologies to General Forrest).
Will it continue to work when Apple lags the market on features, processing power, and freedoms? That remains to be seen.
If Nokia breaks toward Android (as some in the market seem to believe will happen on Feb 11) it may actually HELP Apple's cause, as they will then be able to play the hand of being the alternative Under-Dog, a role they practiced very well with their computers, but one they are not use to playing for their phones.

I'd like to see numbers on mindshare too. Selling the most units doesn't mean you're leading the market, and Apple is clearly the current smartphone market leader. Android is following closely, but everyone else is falling behind.

That's what happens when you make your own software and sell it on your own hardware. That apple premium and charging att exclusivity fees didn't hurt either

Apple has stated publicly (meaning, it's illegal for them to lie about this) that all carriers and operators around the world pay the same basic price for an iPhone. The average selling price is ~$649.
There weren't any exclusivity fees. Advertising deals (endcaps in stores or exclusive display space), service contracts, TV ads, etc, certainly, but there doesn't appear to be anything special with money for exclusivity.

Wow, looks like LG might as well bow out of the cell phone game with the zero profits they appear to get now. Interesting that HTC and Samsung appear nearly flat since the iPhone came around.

For me, the most interesting thing about this data is how RIM is hanging in there. There has been a lot of doom and gloom predicted for them over the last few years, yet they look pretty healthy.

RIM is like IE6. A lot of companies are stuck with them because of previous investments. I can't even imagine a company setting up a new BES, with the other options available now. Blackberry = long, slow death.

I don't know since we 're comparing Apple and Google.. I rather have Google's bank account. Either one will be great.

Tipb,
Just a note on language. You are comparing iPhone to Android OS in aggregate. The graphic appears to be comparing iPhone to various handsets by manufacturer running Android OS. It would be more interesting to talk about how the iPhone is out-performing handsets by manufacturer.

The graph definitely demonstrates that the best way to be profitable in the Mobile industry is to sell Smartphones and to make your own hardware and software. Besides Apple's huge profits RIM also makes a good showing with a model similar to Apples.

Android takes over the smartphone crown from Symbian and Apple apologist tout profits as some type of defense. Unless I'm a stockholder I don't care much about massive manufacturer profits unless they plan on offering higher hardware subsidies.

Apple doesn't pay dividends anyway. Profits are important for strategic flexibility, technology investments, aquisitions, R&D, hiring, etc. It means stability and a good future, which does benefit consumers. No doubt some wallets are getting fatter at Apple, but they do have a history of putting profits into their business.

Profits are important for Apple and it might help them improve their products, but the consumer doesn't care about that until they see the products on the shelves, and right now they want Android.

Profits might help them improve their products?
Jerry, Apple has 11 Billion (with a B) dollars sitting in CASH. And 41 Billion in current assets (as good as cash).http://tinyurl.com/6gav2of (note: all number are in thousands).
Their total Liabilities (27 billion) could be paid off tomorrow morning by 8AM. No other company sits on that much cash.
Its time to start passing some of that to the consumer.

Apple is in the business to make money. Consumers are willing to pay at the current price so why lowere the price. They are sitting on so much cash so they can grow and expand .. enter new markets and try to become as big as Google

Huge lover on this blog, plenty of your articles or blog posts have really helped me out. Awaiting posts!