Despite suffering a small drop from last quarter, Apple is still taking more than half of all profits in the mobile phone industry. This is only bound to go up in light of the iPhone 4S‘s popularity and its availability on three carriers.
Technology analyst Michael Walkley has found that Apple has taken more than half of profits among the leading mobile phone manufacturers:
“Apple generated a remarkable 52% of handset industry operating profits among the top 8 OEMs.”
This is very good news for Apple. Many people expected a significant drop in profit from consumers opting to not buy the iPhone 4 in anticipation of a new iPhone earlier this year. While that did have an effect, it was not nearly as pronounced as others had imagined it to be. As Forbes also points out, Apple is doing 5% better in comparison to this time last year – Apple’s profits in Q3 of 2010 were at 47% after the release of the iPhone 4.
AllThingsD also mentions that Apple has done this with only a 4.2% global market share of handset units. With the release of the iPhone 4S, Walkley expects profits to soar even higher:
“With Nokia in the midst of a challenging smartphone strategy transition and our checks indicating RIM and Motorola Mobility continue to struggle in North America given the increasingly competitive Android smartphone market, we believe Apple will gain further value share in the December quarter and could capture over 60 percent of industry profits.”
In addition, Walkley estimates 29 million iPhone units to be sold in December quarter, which will further expand Apple’s market share.
In an epic reversal of fortunes, Mr. Walkley pointed out that in 2007, Nokia had 67% of operating profits while Apple had just 4%. Today, while Apple has 52% of industry profits, Nokia has been relegated its rival’s former position with just 4% of operating profits.
Things are definitely being shaken up in the mobile handset industry right now.