Ronnie05's Blog

Apple dominates profits with 57% profit share in Mobiles Globally

Posted in Industry updates by Manas Ganguly on May 17, 2011

I had first blogged about the wealth, margins and profit distribution between smartphone makers 9 months back. Read Global Smartphone markets: Of disruptive competition and wealth distribution.

Asymco has come out with another sequential set of figures that focus on share of margins and profits for 8 of the largest smartphone vendors in the world.

1. The ever familiar change of guard in smartphones is a cliche.With Nokia Loosing out on a YoY and Sequential growth and high rises from the Apple and the Androids.

2. The surprise kid here is RIM, which is positive on 3 yr CAGR, Y-O-Y and Sequential. This is more to do with Blackberry’s growing markets in Asia mostly. On its home turf, BB has been taking the pounding from both Apple and Android.

https://ronnie05.files.wordpress.com/2011/05/opearting-margins-8-vendors.png

https://ronnie05.files.wordpress.com/2011/05/profit-shares-8-mobile-phone-vendors.png

3. With 19% smartphone (Canalys) Market share, and 5% Mobiles (IDC) market share, Apple takes a disproportionate 45% of the industry profits. Blackberry (25% of Industry Margins), HTC (15%), Samsung (12%) and Nokia (8%) complete the list.

https://ronnie05.files.wordpress.com/2011/05/asymco-profits-margins-smartphones.png

The mobile industry has historically been unforgiving. Companies that fall into unprofitability tend to stay there or exit/merge. This has claimed many: Ericsson, Siemens, Alcatel, BenQ, Palm, Sony, Toshiba, Handspring, NEC, Hitachi, Casio. LG, Moto and Sony Ericsson are all in the same precarious situation. We’ll have to watch carefully whether a recovery is possible for any of them and whether Nokia will reach the same rocky position.

https://ronnie05.files.wordpress.com/2011/05/profit-shares-8-mobile-phone-vendors-ii.png

Looking at operating profit shares; While RIM, Samsung and HTC have maintained profit share, between 2007 and now, profit share has mostly shifted from Nokia to Apple. Nokia has declined from 47% in 2007 and Apple has come from 0% to 57% of Industry profits.

Not that it surprise too many: It’s become routine to see Apple at the top of the list of profit earners from mobile phones.

Advertisements

One Response

Subscribe to comments with RSS.

  1. […] to three primary factors, including aggressive pricing from competitors, lower average prices and margins across its own product line, and “competitive dynamics and market trends,” particularly in […]


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: