Report: Apple, RIM command outsize profits

Apple and Research In Motion took in a disproportionate share of the handset industry's operating profits last year relative to their worldwide market share, according to an analysis by Deutsche Bank analyst Brian Modoff. According to Modoff, the disparity will be even wider this year.  

The analysis showed that the two smartphone makers had a combined worldwide market share in 2008 of only 3 percent, but wound up taking home 35 percent of the cell phone industry's operating profits. In 2009, the two companies are expected to see their market share grow to a combined 5 percent, but will rack up 58 percent of the industry's operating profit, according to Modoff.

By comparison, operating profits for other established handset makers such as LG, Samsung and Nokia are roughly in line with their market share. And though Motorola and Sony Ericsson continue to hold onto their respective market share positions, they don't figure into discussions about operating profits because they've posted a string of losses in recent quarters.

The analysis highlights the continued growth of smartphones, which made up 13.5 percent of all handsets sold in the first quarter, according to research firm Gartner. And many analysts expect smartphone sales to grow in 2009 while overall handset sales decline.

For more:
- see this WSJ article (sub. req.)

Related Articles:
Apple launches new iPhone 3G S to lines around the world
RIM adds 3.8M new BlackBerry accounts
Gartner: Smartphone sales surge
Apple, RIM dominate U.S. smartphone market, push out Palm

Suggested Articles

The U.S. Department of Justice is charging Huawei with racketeering and conspiracy to steal trade secrets.

Verizon said the State of New York OGS has authorized Verizon as one of multiple contractors to offer services to state agencies and public safety.

P.I. Works announced that its field proven 5G Centralized SON and 5G Performance Management solutions have been successfully deployed into Telefónica