60 cents out of each dollar in industry profit will soon go in Apple's pocket

60 cents out of each dollar in industry profit will soon go in Apple's pocket
It is amazing how things have changed in the cell phone industry. According to a chart that appears on All Things D web site, the share of industry profits belonging to Nokia have dropped over the last 8 quarters from a leading 39% in the fourth quarter of 2009 to just 4% after the third quarter of 2011. Those profits had to end up somewhere, and sure enough during that same time period Apple and Samsung each increased its piece of the pie. Samsung more than doubled its share of industry profitability from 12% to 29% while Apple has gone from 33% to 52% Both companies not only took advantage of the decline in Nokia's profits, but also those of RIM. The BlackBerry maker's engine was also in reverse, dropping from 19% of industry profits to 7%.

The figures on the chart come from Canadian brokerage house Canaccord Genuity, and its analyst T. Michael Walkley says that with Nokia,  Motorola Mobility and RIM struggling, Apple can continue to gain strength. Considering that the Cupertino based firm accounted for more than half of the industry's profits with only a 4.2 global share of the smartphone business, Walkley expects Apple to soon account for 60 cents out of each dollar in cell phone profits.

With the Apple iPhone 4S the current top seller at Verizon, AT&T and Sprint, Walkley now sees 29.9 million units of the phone selling this quarter and 104.4 million copies moving in 2012 followed by 140.8 million in 2013. By that time, Apple might control even more of the industry's profits.

source: AllThingsD

Related phones

iPhone 4s
  • Display 3.5" 640 x 960 pixels
  • Camera 8 MP / 0.3 MP VGA front
  • Processor Apple A5, Dual-core, 800 MHz
  • Storage 64 GB



1. ZEUS.the.thunder.god unregistered

PA are you serious ???? .. means who d hell would buy an ip5s in 2013 ????

36. ardent1

Posts: 2000; Member since: Apr 16, 2011

iPhone 5 to show up in 2012 if history is any guide. Besides support for LTE, the iPhone 5 will have other game changer features. While android OEMs continue to push better hardware features (as was the case in computers), Apple continues to focus on both the software and hardware.

50. ledbetterp3

Posts: 467; Member since: Aug 31, 2011

Seriously? I think android works on software much more than apple, because it's manufacturers such as samsung that work on the hardware. Since a bunch of separate hardware companies working alone, plus one software company focusing just of software, I think android works more than apple in both areas.

52. ardent1

Posts: 2000; Member since: Apr 16, 2011

Android is fragmented. Even Google acknowledges this problem. Android 4.0 is an attempt at addressing this fragmentation. Again, it's a big problem for Google and the android ecosystem.

2. ZEUS.the.thunder.god unregistered

and when would you stop taking apple`s side ??? ... but i think apple really needs you to make some idiots beleive that ishi* is the best ..lol

4. taco50

Posts: 5506; Member since: Oct 08, 2009

Yes because when PA reports facts such as devices sold or profits earned they are "taking Apple's side". Idiot

58. InspectorGadget80 unregistered

Thats all you ever care bout? You think Apple is number one bout cause of sales?

39. ardent1

Posts: 2000; Member since: Apr 16, 2011

The iPhone meets the needs of millions of users. Also it sets a standard that can't be matched by OEMs that can't create the OS. This is the same movie being played over again -- it's a repeat of MS-OS and various OEMs. The PC OEMs dominated the market, but couldn't make enough ROIC. The same will happen to android OEMs.

3. taco50

Posts: 5506; Member since: Oct 08, 2009

Nice! With profits like these Apple will maintain it's industry lead in innovation and quality products. Can't wait to see the great products they create for us in the future.

8. ivanko34

Posts: 617; Member since: Sep 04, 2011

Nice! With profits like these Apple will make lawsuits to everybody who lead in innovation and quality products. Can't wait to see the great products blocked in the future.

12. twenti7

Posts: 152; Member since: Jul 09, 2011

You said it. Apple was once a serious leader in innovation, but ever since they've been sitting on that pile of cash they've grown lazy. They still make excellent products, and I'd still pay the extra money for a Mac over a PC any day, but at the rate the company is going that may soon change.

28. jacko unregistered

theres no innovation in copying http://youtu.be/pPLsr7vKFdw?hd=1&t=3m29s is that i totally think is so true

30. Slammer

Posts: 1515; Member since: Jun 03, 2010

Even you must find these profits ridiculous in any industry. Do you also support the oil industry's pricing and how they rape consumers? I have made the following argument before. Apple products may be good, but are they the best they can be or even offer the most they can while raking in profits like this? Don't you think you should be demanding more from a company that is making this kind of profit all while you need to wait for the next iteration for features that could've been in the previous? There is a serious imbalance here. My generation fought Apple by walking away for this kind of practice to the point where they almost went belly up. This new generation just doesn't seem to care. The generation doesn't care how much money or profits a company makes or how they do it. The generation just wants what it wants." Then people wonder why this country is in the state it is. John B.

40. taco50

Posts: 5506; Member since: Oct 08, 2009

There's a huge difference. Oil is a necessity. You don't have to buy any products. Please stop signing your posts like a moron. Taco50

43. Slammer

Posts: 1515; Member since: Jun 03, 2010

So because Apple is not a necessity, it is ok to make the same practice? I'm sorry Taco, but I don't recognize this logic nor will I change my view. Evidently, Apple is a necessity to you. You simply can't do with out Apple. I can, and I have. I would rather put my money into a company that is strong but also is willing to compromise a little less profit to address a finer balance. I'm much too old to play games with companies that try to manipulate their followers. Maybe one day you will tire of the carrot dangling as I did. By the way, I sign my posts because I believe in them from living half a centry of experience. I don't need to hide behind falsification or pretentious identities. I have nothing to prove to fellow posters nor do I need to be taught what I think is obvious crude misrepresentation out of coy marketing in products. If you think I'm wrong, I would enjoy a more intelligent response of your knowledgeable view. John B.

46. taco50

Posts: 5506; Member since: Oct 08, 2009

People CHOOSE to buy Apple products. No one is forced. If people don't like their product or price there are plenty of alternatives. You could also go without the product altogether. OBVIOUSLY people think its WORTH their money to buy Apple because it's BETTER than the alternative. Sure I can get a free crapdroid alternative. I prefer to spend the extra money and get the alternative. This nonsense on PA by fandroids that Apple has somehow hypnotized consumers is ridiculous. If they bought the product and were dissatisfied or felt ripped off they'd not buy again.

69. Slammer

Posts: 1515; Member since: Jun 03, 2010

First of all, let's get this out of the way. I am not what you call a "Fandroid". I have used WinMo for years and then owned the original Apple iPhone. When WebOS came into the scene, I was hooked. I love WebOS and have now taken sight of Windows phones. For me, I love the choice of Apps and Android has filled that gap. The extent of my "Fandroidism" if you will, ends there. Now to move on: Your Straw Man fallacy of necessity Vs optional choice is, somewhat fragmented. Nobody is forcing anyone to purchase gas in support of oil prices. There are ways to get around it. It is sheer convenience that has driven society to rely on this type of fuel supply. Few people are going to convert their heat to wood powered furnaces or ride their bikes to work. These are choices that can be made but few will do so. So now it takes on the perception of necesssity. But is it really? After returning to Apple to give them a second chance with the original iPhone, I found their dictatorship and directive to remain proprietary in their offerings, once again an intolerable practice. I chose not to subsidize funds to Apple in making record profits year after year while I am told what I can have or not have(Ex. Multi-tasking). Everyone else was enjoying it. I had Windows mobile that gave me mutitasking capability that is indispensable for many business applications. Apple completely left it out knowing they could get away with it for three iterations of the device. The less they offer, the more they make. I don't find this attractive. I also don't buy the fact that they use the "We don't feel it's ready" argument. Sheeple marketing is widely used in any industry and Apple has excelled in providing such measure. Look up sheeple marketing if you are not in understanding of what I convey. I will say this once more and hope that this debate will be wrapped up and put to bed. Apple is not a new company. They have been around for years. They indroduce a product such as the ipod/iPhone and remained true to their roots of retaining the walled garden approach. The new generation of consumers ignorant of Apple's model, are attracted to something new while being controlled like puppets on every offering while they bask in record profits. They have successfuly employed a technological hype for their products from other's ideas. I'm not saying Apple wasn't smart in beating others to the market with some offerings, but to call them innovative, is just short of the entire truth. Steve Jobs(rest his sole) admitted right on camera that "Apple has always been shameless in stealing other's ideas". What more proof do people need? Money is the only motivation for Apple to appease itself and its shareholders. If they can do it by escaping money spent on certain offerings, they will. Thanks to their continual hyperbole through cunning marketing, they leave their consumers short changed while the rest of us already enjoy the current benefits. I cannot support this. John B.

44. remixfa

Posts: 14605; Member since: Dec 19, 2008

thanks for showing us that moron's sign their post. lolol :)

11. taco50

Posts: 5506; Member since: Oct 08, 2009

Didn't I already chase you off in shame once? Do you realize all cell phones are made in these same factories and Apple now does regular inspections to ensure good working conditions. Facts don't matter to a fandroid idiot though.

17. narley

Posts: 357; Member since: May 14, 2009

hows your battery fanboy?

26. bucky

Posts: 3776; Member since: Sep 30, 2009

Still better than android even eoth the problems. Not a good point

45. remixfa

Posts: 14605; Member since: Dec 19, 2008

i havent seen too many i4s's getting 36 hr battery life like my SGS1, and its not rated nearly as well as the industry leading SGS2... which just blow's away the i4's battery life even by official ratings.. which as the i4s has shown, is just a "goal"..lolol . Nice try though.

6. squallz506

Posts: 1075; Member since: Oct 19, 2011

too bad only 2 cents of the 60 will go towards R&D. with that kind of profit the iphone 5 should have a lightsaber built in.

7. mukrenol

Posts: 92; Member since: Sep 03, 2011

every kudo points for apple... PA gets some commission... that... sounds logical....

18. Hallucinator

Posts: 390; Member since: May 24, 2010

And comments like that make you sound moronic

9. donato

Posts: 22; Member since: Nov 28, 2010

Even an idot cannot argue with the facts. Apple is number one. They make a superior product so they sell the most. People can say whatever they want about apple but the proof is in the facts. Plain and simple Apple Makes more then half of the industries profits obviously for a reason. The better product will sell more, and will continue to sell more. There is just no argument against that.

10. squallz506

Posts: 1075; Member since: Oct 19, 2011

here is the argument against it. the definition of "superior product" is entirely subjective. and there are so many more factors in selling a product besides quality. apple spends more on advertising than anyone else. apple products [generally] have more accessories. there are so many variables in the market besides quality.

13. Bigbluetundra

Posts: 45; Member since: Nov 03, 2011

So, by your logic, a Kia is a better car than a Ferrari because they sell more? Interesting...

14. taco50

Posts: 5506; Member since: Oct 08, 2009

Apple costs more AND sells more. There's no reason people would spend more for a worse product. Kia is way cheaper than Ferrari. Sorry facts are facts. There's no arguing with what's staring you in the face.

21. superguy

Posts: 448; Member since: Jul 15, 2011

Sure there are reasons. They don't know any better and don't consider other options. And they won't consider another option until they get burned, even if there are better and better-price options out there. I know lots of people who do that with more than just phones. They're just not interested in other stuff, nor do they do the research. They just buy whatever a favored vendors puts out. Just like Apple.

* Some comments have been hidden, because they don't meet the discussions rules.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.