• Apple accounts for small market share, HUGE Profit shares

    Image Courtesy TheiPhoneBlog

    A report published by The Wall Street Journal claims while Apple and RIM together hold only a tiny 3% share of the mobile phone market, they hold a lion's share (35%) of its profits - iPhone alone taking up just 1% market share, and accounting for ~ 20% of the total profit!

    That's a huge setback to mobile phone giants like Nokia, Sony, LG etc. These all hold much big market shares (up to 60x) but account for much less profit.

    At least for iPhone's manufacturer Apple and BlackBerry's Research In Motion. The two accounted for only 3% of all cellphones sold in the world last year but 35% of operating profits, according to Deutsche Bank analyst Brian Modoff. The disparity will become even starker this year when, he estimates, the two will take 5% of the market in unit terms but 58% of total operating profits.
    The situation is such that Motorola, which once made the most sold phone ever is facing big losses, let alone profit. There is no sign of Palm here, maybe since their Pre has been launched roughly a month ago - but it would definitely be interesting to know if their so-called 'iPhone killer' did them any good or not.

    [WSJ via MacRumors]
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