3% of the Wireless Market, yet 35% of Profits Belong to Apple and RIM

Brian Modoff, a Deutsche Bank analyst, supplied some digits to the Wall Street Journal this morning and these numbers understate the true power held by Apple and Motorola in the mobile industry. RIM and Apple combine to compose 3 percent of the cell phone market, yet 35 percent of its operating profits. OMG. The two companies have remained strong recently with the release of their handsets, nonetheless these statistics are crazy. Apple’s next handset release is a year away and, in order to compensate, slowly releases the 3GS to all location still deprived of its glory. On the other side of fame, RIM still has plenty more handsets, not to mention highly anticipated ones, still to come this year. These include the Storm 2, Bold 9020 (Onyx), and the Magnum. It is probable that both companies will reach the 40 percent mark before the year’s end is reached. Diverting your attention away from RIM and Apple, Nokia is the only other competitor in the fight for mobile mastery, and the only other company whose profit share exceeds its market share. Next on the list is Samsung and LG, whose companies combine to make up over 30 percent of the global cell phone market and 20 percent of its profits. Lastly comes Motorola. Yikes. Read.






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