AfterDawn: Tech news

Apple's iPhone claims 32 percent of industry profits?

Written by James Delahunty @ 08 Aug 2009 8:03 User comments (7)

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."

Previous Next  

7 user comments

18.8.2009 09:55

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

28.8.2009 23:56

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.

39.8.2009 15:38

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

49.8.2009 17:43

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?

59.8.2009 17:53

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*

This message has been edited since its posting. Latest edit was made on 09 Aug 2009 @ 6:00

69.8.2009 23:22

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

79.8.2009 23:26
varnull
Inactive

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.

This message has been edited since its posting. Latest edit was made on 09 Aug 2009 @ 11:27

Comments have been disabled for this article.

Latest news

VLC hits milestone: over 5 billion downloads VLC hits milestone: over 5 billion downloads (16 Mar 2024 4:31)
VLC Media Player, the versatile video-software powerhouse, has achieved a remarkable feat: it has been downloaded over 5 billion times.
2 user comments
Sideloading apps to Android gets easier, as Google settles its lawsuit Sideloading apps to Android gets easier, as Google settles its lawsuit (19 Dec 2023 11:09)
Google settled its lawsuit in September 2023, and one of the settlement terms was that the way applications are installed on Android from outside the Google Play Store must become simpler. In the future, installing APK files will be easier.
8 user comments
Roomba Combo j7+ review - Clever trick allows robot vacuum finally to tackle home with rugs and carpets Roomba Combo j7+ review - Clever trick allows robot vacuum finally to tackle home with rugs and carpets (06 Jun 2023 9:19)
Roomba Combo j7+ is the very first Roomba model to combine robot vacuum with mopping features. And Roomba Combo j7+ does all that with a very clever trick, which tackles the problem with mopping and carpets. But is it any good? We found out.
Neato, the robot vacuum company, ends its operations Neato, the robot vacuum company, ends its operations (02 May 2023 3:38)
Neato Robotics has ceased its operations. American robot vacuum pioneer founded in 2005 has finally called it quits and company will cease its operations and sales. Only a skeleton crew will remain who will keep the servers running until 2028.
5 user comments
How to Send Messages to Yourself on WhatsApp How to Send Messages to Yourself on WhatsApp (20 Mar 2023 1:25)
The world's most popular messaging platform, Meta-owned WhatsApp has enabled sending messages to yourself. While at first, this might seem like an odd feature, it can be very useful in a lot of situations. ....
18 user comments

News archive