Apple’s iPhone Accounts For Only 4% Phone Market Share, But 52% Of Profits

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The iPhone has been popular through the years, and the newest 4S may be the most popular iPhone yet. There’s a new report by Analyst T. Michael Walkley with Canaccord Genuity, via Forbes, that Apple’s iPhone is the most profitable mobile phone. In fact, Apple’s share of the phone industry is only 4.2% of all phones in the world, but the iPhone accounts for 52% of the profits in the phone industry. These numbers are covering all phones across the globes, and not just smartphones.

While other manufacturers rely on various operating systems, Apple makes the software and hardware, and is making the most profit in the industry by far and away. These are quite astonishing numbers, and it shows Apple has a lot of room to grow with only 4.2% of the market. Their current profit rate will keep them making phones for a long time to come, and as their market share grows, so will that profit number. It’s also quite a reversal of fortunes, as in 2007, Nokia accounted for 67% of operating profits, and Apple only 4%. Today, Apple is at the top with 52% of profits, and Nokia has dropped all the way down to 4%. Also, asymco‘s Horace Dediu is another analyst who tracks these numbers, and pegs Apple at 56% of industry profits.

Both analysts are also looking for a big final quarter of 2011 for Apple, spurred by the new 4S and free 3GS. Walkley is looking at 29 million iPhones sold, and Apple to reach 60% of the profits in the global phone industry.

iphone profits1 Apple’s iPhone Accounts For Only 4% Phone Market Share, But 52% Of Profits



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