iPhone Rakes in 8% of Cellphone Market Revenue, 32% of Profit

All Things Digital reports that, based on Bernstein Research analyst Toni Sacconaghi's estimates, that while Apple takes in only 8% of cellphone industry revenue, they rake in a bind boggling 32% of the profit. This is similar to their share of desktop computing revenue and profits.

“With the iPhone and its Apps Store, Apple has established a formidable smartphone ecosystem, which history suggests is very difficult to overcome,” the analyst explains. “In fact, Apple has the potential to become a de-facto standard of sorts in the consumer smartphone market, much like it became in the portable media player market with iPods, due in large part to its first mover advantage and tight software and hardware integration.

Indeed. Applying the Mac and iPod business model, especially as convergent, mobile devices begin to outpace traditional players and platforms, was said by Apple to be their strategy from the get go.

Looks like it just might work out for them...

Rene Ritchie

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.