Analyst: Apple Lands Over Half of Smartphone Industry Profits

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%).