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iPhone is 3% of handset unit volume, 2x profit of RIM, Nokia, Sony combined. iPad next?

While iPhone accounts for only 3% of handset market share by unit volume, Finacial Times reveals some Goldman's numbers that show it's set to capture a stunning 2X the profit share of Nokia, RIM, and Sony -- combined.

And Goldman only showed those numbers by way of saying how enthusiastic they are about iPad doing the same thing to the PC industry. That sounds crazy, but iPad almost equalled Mac sales numbers this quarter and while its margins are less than the Mac's, they're higher than the razor-thin netbook and bargain basement PC industry where much of the volume rests.

TiPb's been saying for a while Apple only cared about market share as much as it meant increased profit share. Looks like that's working out for them.

[Financial Times via Business Insider Daring Fireball]

Rene Ritchie
Contributor

Rene Ritchie is one of the most respected Apple analysts in the business, reaching a combined audience of over 40 million readers a month. His YouTube channel, Vector, has over 90 thousand subscribers and 14 million views and his podcasts, including Debug, have been downloaded over 20 million times. He also regularly co-hosts MacBreak Weekly for the TWiT network and co-hosted CES Live! and Talk Mobile. Based in Montreal, Rene is a former director of product marketing, web developer, and graphic designer. He's authored several books and appeared on numerous television and radio segments to discuss Apple and the technology industry. When not working, he likes to cook, grapple, and spend time with his friends and family.

15 Comments
  • Here come the hate comments, yes droid guy I know, I know. But I like my iPhone and nothing u say is gonna change that.
  • The only deathgrip We have is on the competition.
    Hate on
    Steve
    Sent from my iPhonez
  • Less volume but more profit means Apple has been ripping people off hard. Fanboys still worship them regardless.
  • @ohYeah. You pay nothing more for an iPhone than any other compatible smartphone. In fact, the resale value of Apple products makes them the best value in electronics. I used my iPhone 3G for two years and then sold it on eBay for $100 mote than I paid for it! Brat that value with any other phane...you can't.
  • The iPhone is a superior device to any other smart phone out there. It's elegant, sophisticated, and it just plain works. Aside from the overblown media-hype regarding a barely there or unusual antenna issue, the device is phenomenal in it's efficiency and practical use. I will never regret going from a Blackberry to my iPhone, I get so much more use both in business and personal life from my iPhone. The same can be said for my MacBook Pro, it's far superior to any PC laptop I've ever owned, for all the same reasons mentioned above regarding my iPhone. The people that seem to be doing the most complaining or "hating", are obviously not owners of any of the latest Apple products.
  • So lets get this straight...
    It's a post...about profit...and the first 5 comments are about haters who have not even arrived?? Y'all don't see something wrong with that? Cause I surely do. Hmm.
    But on to the topic that others couldn't stay on...
    Apple will always have high profit. Everything is in house. Not outward cost has to be paid when it comes to Apple.
    From the OS development to the processor now to the GPU to the design...and so on and so forth.
    One of the posters were right, when it comes to the iPhone, there price is right on par with other phones of course. But when you take into account the price of making that phone and the labor...it's much lower than what other companies pay. The difference between RIM and Apple though...that's a lil more odd. I could only think since Blackberry have more BOGO deals and such...that could lower their profit?? That one I don't know.
    All in all, as long as a company is making more monye YOY, that is all that matters. You can't compare one company's profit to another to measure greatness though. That's ludicrous and reaching for something to grasp.
  • What are "Ebit Dollars"?
  • IDavey, you are obviously not a finance guy. Financial success is only measure of success. Apple, RIM, Nokia etc are businesses and financials success allows them to stay in business. If consumers are will to pay a "premium" for Apple products, that clearly makes them "greater". Finance 101.
    You can argue day and night your opinion about IPhone vs BB vs Android vs etc. However, it is a FACT that Apple outperforms the competition in smartphone profit share (not to confused with sales) which is the most important financial metric. Apple has recently surpassed Microsoft in market capitalization which is out of this world (theoretical it means that Apple is a more "valuable" enterprise)
  • EBIT is a financial metric. It stands for Earnings Before Interest (expense) and Taxes. It measures a companys earnings before interest expenses (on a loan etc) and taxes. Interest and Taxes are considered "non-operating" expenses and thus financial guys something "exclude" from the picture...
  • *sometimes exclude this from the picture
  • @oh yeah
    Less volume and more profit points to a very well run and successful company. Ripping people off? Don't be naive
  • Apple is not ripping people off, ATT is paying an extra subsidee to Apple for exclusivity rights
  • @IDavey
    Just because everything is in-house at Apple doesn't mean it's cheaper to produce their stuff. In fact, the main reason companies choose to outsource is to SAVE. You clearly have no idea about what you speak...
  • What Apple does is a remarkably smart move.
    They release a new gadget and render it completely obsolete a year later with a new version, thereby "forcing" their fans to update. Since part of the hype of having something Apple is having it before anyone else, fans will in fact incur in more expenses to have the new gadget, regardless of the fact that they own something similar.
    Apple sales are high because of two main reasons then: They are constantly making upgrades to their products, therefore happens what I explained before. And their product range is very small, i.e. only one smartphone, which translates in lower expenses, (compared to the other competitors).
    That's why they have such small handset market share and such high profits.
  • Also they make a minimum of $600 on an iPhone because of the $400 AT&T subsidy. Oh btw I just noticed, Apple built AT&T into iPhone spellcheck lol. If were to guess, I'd say most other phones aren't $600-$700 on any network. Other network converts, what do you have to say?