x PhoneArena is hiring! Reviewer in the USA

Half of handset industry profits belong to Apple

Posted: , by Alan F.

Tags :

Half of handset industry profits belong to Apple
In it hard to believe that 5 years ago, the Apple iPhone did not exist. Now, 50 cents out of every dollar in handset industry profit belongs to Apple in the first quarter of the year, according to Canaccord Genuity analyst T. Michael Walkley. He also notes that the handset is the top selling phone at both AT&T and Verizon despite strong sales by 4G enabled devices and recently launched high-end Android models at both carriers.

The analyst mentioned that at Verizon, where some strong Android models like the HTC ThunderBolt and the Motorola DROID X2 have recently been released, the Apple iPhone "by far" remains the top-seller. The analyst expects iPhone sales at Big Red to continue to be strong as more customers' 2-year contracts expire allowing them to purchase the subsidized version of the Apple handset.

Besides raking in half of industry profits, Apple is poised to sell 100 million Apple iPhone units during 2012. Ironically, Walkley expects the Apple iPhone's share of smartphone sales to drop from 16% last year to 15.2% by the end of next year. Still, with the increasing number of smartphones being bought, that 15.2% share will still add up to more than 100 million units of Apple's touchscreen handset being sold in a year.

Nokia is expected to be on top of the global handset market by the end of next year

Nokia is expected to be on top of the global handset market by the end of next year

Canaccord Genuity also sees a sharp drop in RIM's slice of the smartphone pie from 12.6% in the current quarter to 8.6% at the end of 2012. Android will have a 49.9% share at the end of next year, according to the estimate, while Microsoft's mobile operating system will be a big winner. A chart prepared by the securities firm shows Windows Phone having an 11.2% reading at the end of next year, up sharply from the current 4.9% stake.

According to Canaccord Genuity, by the end of 2012, Samsung will trail Nokia by just 1.3% for the position on top of the global handset market. Nokia is expected to have a 23.3% share vs. 22% for the Korean manufacturer. No other OEM will be close to the top two by the end of next year with fellow Korean firm LG estimated to have a 6.4% slice of the pie, good enough for third place.

source: Canaccord Genuity via AppleInsider
 
Apple gets 50 cents of every dollar of handset industry profit

Apple gets 50 cents of every dollar of handset industry profit


107 Comments
  • Options
    Close






posted on 08 Jul 2011, 18:24 5

1. Praetor (unregistered)


Makes you wonder, if they're so incredibly profitable, why they need to have their products manufactured overseas.

posted on 08 Jul 2011, 18:34 1

2. appleofmyi (Posts: 1; Member since: 03 Mar 2011)


Other countries like China and Brazil offer incentives for foreign investors. It also has other cost benefits other than those incentives that makes outsourcing appealing to big companies in the US, like Apple.

posted on 08 Jul 2011, 20:13 5

15. Praetor (unregistered)


Obviously, it's more profitable to outsource to China. That's not my argument. When you're pulling in these kinds of obscene profits, at what point do you realize you can offer tens of thousands of Americans some decent jobs and still pull in merely absurd profits? And maybe, because of it, appeal to more buyers. Put your plant in Texas or some place business friendly like that. You think some state won't give them some incentives? New York was offering AMD the moon to build a plant there.

posted on 08 Jul 2011, 21:03

24. Patricky (unregistered)


If you were the elite person from the investment community, would you pound at Apple's stock if Apple forfeited a few cents of profit by moving the manufacturing back to USA? Further, does US still have sufficient eco-system (materials, labours, flexibility, regulation, etc.) locally to support the quick ramp up & down which is important for consumer products?

posted on 09 Jul 2011, 19:42 1

95. RM (unregistered)


In other words, Americans are too fat, lazy and stupid to put a phone together. This is so obvious it wasn't worth typing.

posted on 08 Jul 2011, 21:03 2

25. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)


It is not about making merely absurd profits. If you can make obscene profits, then if you don't make the obscene profits, you are deemed a failure and a threat to the corporation and are summarily dumped by the Board of Directors.

Also, with manufacturing occurring in China, there is an incentive for the Chinese govt. to give Apple favorable tax/import duty treatment. The China cellular market is a bit larger than the U.S. cellular market, so that consideration tends to win out. Remember, it is about making obscene profits if you can....

posted on 10 Jul 2011, 10:36 2

106. remixfa (Posts: 14255; Member since: 19 Dec 2008)


first off.. ur about to make me defend apple.. which makes me want to take a shower.. so u suck for that...

1) there is no such thing as "obscene" profits. Thats an idiots term for "i wish i made that much". Gross profits mean nothing. Its profit margin that counts. Idiot politicians demonize oil for their "obscene profits" because they know most normal people think they are swimming in cash. Oil companys make around the standard 8% profit margin. Thats not "obscene", thats standard.
Now companies like Apple make a bit more. If i remember correctly apple makes something like a staggering 36% profit margin which is insanely high. But the tech market in general is pretty high because of demand for the products (which are considered luxury not necessity like oil so their profit margin is much higher).


Could Apple move its production to the US and give thousands of US workers a job? Absolutely they could. Will they? Absolutely not.
1) we cant put up a factory in 90 days, there are too many regulations.
2) their profit margins would likely cut in half as they pay for all those regulations, increased worker wages, benefits, and......
3) SUPER HIGH US corperate taxes. We have the highest corperate tax structure of any country in the developed world. That is the main reason why companies outsource to other countries. They save about 15-20% in taxes alone by going to China.

Blame politicians and stupid voters, not apple. They are just playing in the system that was created for them..

posted on 08 Jul 2011, 19:00 3

5. iBlowjobs (unregistered)


Because America is full of no good lazy ass people who expects to get paid without doing anything. And Apple knows it.

posted on 08 Jul 2011, 19:02 1

6. downphoenix (Posts: 3165; Member since: 19 Jun 2010)


because its more profitable to do this. Plus these companies dont give a rip about the american public. Apple would have to charge an extra $100, easily, if they made it in the US instead of China.

posted on 08 Jul 2011, 21:57 6

35. The_Miz (Posts: 1496; Member since: 06 Apr 2011)


Because the US sucks to do manufacturing, so why not do it overseas where the labor is cheaper?

posted on 09 Jul 2011, 14:40

83. BelowtheBelt (unregistered)


Come on sniggly, Your argueing with a prepubescent boy here. And from his pic, hes obviously all ready messed in the head. I know a good arguement can be fun, but the problem with argueing with idiots is from a distance no one can tell the differance. No need to fill his little ego by commenting back. even though it is easy and tempting.

posted on 09 Jul 2011, 18:16

92. biscutbob (Posts: 82; Member since: 08 Jul 2011)


That adds to the profit. Cheap manufacturing.

posted on 08 Jul 2011, 18:58 6

3. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


In other news, water is wet, Donald Trump is a douchebag, and heavy metal is awesome. Apple is the reason I want to go back to school for marketing.

posted on 08 Jul 2011, 20:11 1

14. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)


You sell for AT&T right? I thought your store doesn't sell iPhones and it's the top selling phone by far. Must suck losing so many sales to a superior device.

posted on 08 Jul 2011, 21:28 5

29. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


No. I left AT&T's employ months ago. Leave it to you to get details wrong, Taco. First, I did sell iPhones. I just avoided it if I could because Apple doesn't like to pay salespeople a just wage. Though to be fair, it doesn't take much to sell iPhones to the uneducated public. No, because I was a real salesman, I helped smart people decide to buy the Inspire and Captivate, which were the truly superior devices we had. But if someone came in absolutely bleating for an iPhone, I would sell it to them. And without pushing the iPhone, the store chain I sold for was the top ranked one in the region, asked by AT&T to expand inti other territories.

I would think, Taco, that resurrecting an old bulls**t insult like the one you just used ("you lost sales to the iPhone, ha ha ha") is too low even for you. Stop making yourself look like an epic dumbass.

posted on 08 Jul 2011, 22:01 6

37. The_Miz (Posts: 1496; Member since: 06 Apr 2011)


Sniggly as usual trying to act bold on the internet.

Yeah, excuse a customer for wanting to choose a phone that's actually good and gets high scores across the board unlike the Captivate, which iirc, took forever to get updates for.

posted on 08 Jul 2011, 22:07 3

39. iSheepHunter (Posts: 55; Member since: 07 Jul 2011)


What are you talking about? His comment clearly says he sold fairly< CLEARLY its says if they wanted an iphone he gave them one

posted on 09 Jul 2011, 02:08 3

49. The_Miz (Posts: 1496; Member since: 06 Apr 2011)


But he's been an elitist about it. It's their damn right if they want to buy the superior phone over another typical Android phone.

posted on 08 Jul 2011, 22:28 4

45. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


The Captivate is a good phone, despite the lack of updates, Miz. The only thing it lacked compared to the iPhone was a front facing camera. On every other level it matched the iPhone 4 toe to toe, and it's half the iPhone 4's price, and less than half of the 32G iPhone 4 if you throw in a 16 gig SD card.

I mean, f**k, it's even sexier than the iPhone 4.

posted on 09 Jul 2011, 02:09 3

50. The_Miz (Posts: 1496; Member since: 06 Apr 2011)


You wish. Why would I waste money on a phone that can't even update when it should when I can a much better iPhone without the Android glitches and errors?

posted on 09 Jul 2011, 03:30 2

56. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


WHAT Android "glitches and errors?!"

You know, you iFanboys always bitch and moan about glitches and errors, but you never get more specific than "force closing," which, if you don't have 15 apps running at the same time, is easy to avoid. You also forget the reason why Apple updates its software: THEY'RE ALWAYS FIXING BUGS TOO.

And why should you buy the Captivate? Because even though it's running Froyo instead of Gingerbread, it still kicks the s**t out of the iPhone 4.

And if you want a phone that DOES update faster, go with Motorola or HTC, both of which are pretty good about their updates. Hell, the Droid X was the first Android phone in the U.S. to get Gingerbread. Except for maybe the Nexus S.

posted on 09 Jul 2011, 14:59

85. The_Miz (Posts: 1496; Member since: 06 Apr 2011)


Remind me to never come to your store for a phone if you suggest the Captivate over the far superior iPhone 4. It's simple fact - iPhone 4 is better. Get over it and quit being so f***king bitter about it.

Android has constant crashing, forced closing, freezing, bloatware, malware apps(lol Googe can't even stop this), etc.

And Droids are the worst phone on the market, simple fact.

posted on 08 Jul 2011, 21:59 2

36. The_Miz (Posts: 1496; Member since: 06 Apr 2011)


And yet they make more money in one day than you ever will in your entire life.

It's the truth - Apple can put their logo on a paper bag and it'll sell. It's called BRAND RECOGNITION. They know how to run a business.

posted on 08 Jul 2011, 22:10 4

40. iSheepHunter (Posts: 55; Member since: 07 Jul 2011)


Was anybody hear saying Apple doesn"t make any money or was ANYBODY talking about brand recognition? No? then what is miz blabbering about?

posted on 09 Jul 2011, 02:10 1

51. The_Miz (Posts: 1496; Member since: 06 Apr 2011)


Miz is blabbering the truth and nothing but the truth.

posted on 09 Jul 2011, 04:28 2

61. wassup (Posts: 565; Member since: 23 Jun 2011)


And you'll argue that that paper bag is the best paper bag available.

posted on 09 Jul 2011, 09:43 1

67. jvdjj (unregistered)


Who gives a rats ass about the iPhone lol my EVO 3d will tear its mac ass out anytime anyday,and with double everything better. IPhone is one boring looking phone,with Android you can change how it looks,reinvent the screen and with iPhone its just that,u can change the wallpaper if anyone cares

posted on 08 Jul 2011, 22:13 3

41. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


Did I ever say they don't know how to run a business? They obviously know what they're doing.



And don't beso sure that I'll never make the kind of money they do. I'm young, and I haven't even begun to get serious about my life. At my age Jobs was still bumming on friends' couches.

posted on 09 Jul 2011, 02:14 4

52. The_Miz (Posts: 1496; Member since: 06 Apr 2011)


Yeah, keep dreaming. Jobs had the intelligence to jumpstart his company and turn Apple into a success. All you've done so far is **** and moan in the comments because people prefer iPhones over Android phones.

You can't handle someone having a different opinion than you and fly off the handle over trivial things. I am very sure. I know your type very well and with that kind attitude whenever a comment doesn't go your way, then you really won't get very far, kid.

posted on 09 Jul 2011, 03:32 4

57. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


Um, Miz, I don't like people being objectively wrong, which you are almost every time you post. You're stupider than Taco, which is quite an achievement to be sure. You demonstrate time and again that you don't know what you're talking about, you can't qualify your opinions with any backup, and you're a fan of a pro wrestler. You're like an unholy trinity of stupid, which makes my soul burn with anger.

Want to comment? Please login or register.

Latest stories