Analyst: Apple Lands Over Half of Smartphone Industry Profits

| Apple Stock Watch

Apple raked in over half of the smartphone industry’s profits during the second quarter of 2011, according to Canaccord Genuity analyst Michael Walkley.

“Apple generated a remarkable 57 percent share of estimated Q2/11 handset industry operating profits among the top eight OEMs with only 5.4 percent global handset unit market share,” Mr. Walkley said.

iPhone keeps bringing in the profitsApple’s iPhone scored over half of the smartphone industry’s profits in Q2

Apple’s iPhone, along with Samsung’s smartphone lineup, are seeing increases in marketshare, although Nokia and RIM both saw reductions. Those dips, according to Mr. Walkley are due to what he called product transitions.

“Apple enjoyed strong sales of the iPhone 4 and the iPad 2, and its smartphone share remained roughly flat around 18.4 percent in Q2 2011,” he said. “However, given Nokia’s declining smartphone sales, Apple captured number one smartphone share during the quarter.”

While Mr. Walkley is estimating Apple brought in almost 60 percent of the second quarter’s smartphone profits, asymco’s Horace Dediu estimates that percentage is actually closer to two thirds.

“Nokia, Motorola, Sony-Ericsson and LG all saw losses,” he said. “The other vendors split the slightly decreased pie with Apple getting two thirds of it (66.3 percent).”

Both based their figures on results reports from the major smartphone vendors.

“Three companies which captured 11 percent of the profits before the modern smartphone era started (four years ago!) now capture 84 percent of the profits,” Mr. Dediu added.

Regardless of which figures are more accurate, both sets show Apple taking over half of the smartphone industry’s profits for the quarter — and with only four years in an already established market.

Apple is currently trading at $393.82, up 3.34 (0.86%).

Comments

Garion

And to think that some people still believe Apple is trembling in their boots just because Android has a bigger marketshare than the iPhone.

These numbers tell the real story of who the winner of the “smartphone war” is.

mhikl

Tis like property size. Where would you rather live? On the largest property which sits between the town dump and a huge swine farm or the next largest property with an ocean view.

mhikl

Here?s another interesting point . . .

Read in Gruber the following: Android may be gaining market share on the ground, but when it comes to market share at 10,000 feet and above, it?s still an Apple world.

However, don’t party yet. Would make sense that Android still owns the market share of travel by Greyhound and thumb.

RonMacGuy

mhikl, it really is a pity that so many people are willing to throw so much money away on such a closed architecture that feels like a toy in their hands. But I’m sure the mass exodus will begin shortly. Our favorite predictor of all things Apple says it is so!!

RonMacGuy

Well look at that.  Exxon-Mobil’s market cap is $392B and Apple’s is almost $368B.  When does the friendly competition begin for when Apple will become the most valuable American corporation?

My vote is May 1, 2012!!

mhikl

Our favorite predictor of all things Apple says it is so!!

I know. And then he denies. Flipflop, Flipflop. Must write a poem on the topic. Did you see the url I posted in another column on minyanville.com? Has a great Apple section with a history of all things Apple.

And we are in tight times. Money is scarce and so I guess that is when one wedding feasts at McDonald’s.

Mass exodus. A delicious thought and I believe it. As Jean-Luc would say, “Make it so!”

Constable Odo

And to think that some people still believe Apple is trembling in their boots just because Android has a bigger marketshare than the iPhone.

There are so many jackass fund managers that actually say Apple is under pressure from Android’s growth despite it being easy to see that it’s Nokia and RIM that are constantly losing market share.  What makes fund managers so blind or stupid?  And what’s so great about Android’s growth if Android smartphone manufacturers profits are shrinking.  Why Wall Street and those knucklhead fund managers are so swayed by a platform that basically has a poor long-term financial model is beyond me.  With Android being totally free and not making much in the way of profits, what happens when some lawsuits start taking money away from Android smartphone vendors?  They’ll start to jump ship.

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