AfterDawn: News

Apple's iPhone claims 32 percent of industry profits?

According to Bernstein Research analyst Toni Sacconaghi, Apple's iPhone accounted for about 8 percent of the handset industry revenue, but possibly around 32 percent of the industry operating profits, during the first half of 2009. He attributed the success to the "first mover" advantage and compared the iPhone / App Store tie to the very successful iPod / iTunes tie.

"Our analysis indicates that Apple's iPhone accounted for only eight per cent of handset industry revenues but 32 per cent of industry operating profits in the first half 2009," Sacconaghi wrote in a note to clients. "Even if we exclude the operating losses generated by Motorola and Sony Ericsson, Apple still accounted for 25 per cent of industry profits."



Apple is the fifth-place vendor for handsets, hanging in behind the giant Nokia, then Samsung, RIMM and LG. "iPhone's success is akin to Apple's position in the PC industry - where the company enjoys an estimated 25 per cent of industry profits, despite capturing only six per cent of industry revenues."

Written by: James Delahunty @ 8 Aug 2009 8:03

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• 7 comments

• KillerBug

  I assume they include the millions of $10 apps downloaded in that profit margin, even though it is technicaly software sales profit.

  8.8.2009 09:55 #1

• inviscid

  They sold about $3 billion of iPhones in the quarter, which is a yearly rate of $12 billion. I think the App Store revenue is completely insignificant compared to that. They've had perhaps 1.5 billion downloads, most of which I'm assuming are software updates (I've updated each of the Apps I've downloaded an average of about 4 times). The average price I've paid per App is about a dollar (I've downloaded 133 Apps, which is more than average). So that's about $375 million in revenue, of which Apple keeps about $112 million (30/70 split). $100M out of $12B is less than 1%. Even if I'm off by a factor of two or three it's still insignificant.

  8.8.2009 23:56 #2

• ZippyDSM

  the I brand fad amounts to sheeple who don't know better stampleing each other for over priced under preforming stuff...

  9.8.2009 15:38 #3

• inviscid

  Originally posted by ZippyDSM: the I brand fad amounts to sheeple who don't know better stampleing each other for over priced under preforming stuff...Do you get paid to repeat boring myths or do you do it for free?

  9.8.2009 17:43 #4

• ZippyDSM

  Quote:Originally posted by ZippyDSM: the I brand fad amounts to sheeple who don't know better stampleing each other for over priced under preforming stuff...Do you get paid to repeat boring myths or do you do it for free?Sorry but if it dose not have a removable battery and memory, or at least expandable memory(with removable battery) its CRAP!
  
  *edit*
  And I freely share my drool with everyone!!
  *lick*
  
  

  9.8.2009 17:53 #5

• Emilio123

  I like iPod!! I love Apple. It´s great! and we can choose different colors of it´s products! I really like this!

  9.8.2009 23:22 #6

• varnull

  Oh wow.. like I'm amazed.. different colours.. sheesh.. I can have any of about 50 different colours on my nokia.. for the grand price of £4.99 each.
  
  Last night was my first experience of that horrid itunes app on winduhz.. epic fail.. what a load of crap.
  

  
  
  Free open source software = made by end users who want an application to work.
  I would rather you hate me for who I am than love me for what I am not.
  “It is poor civic hygiene to install technologies that could someday facilitate a police state.” - Bruce Schneier

  9.8.2009 23:26 #7