With 4% Market Share, Apple’s iPhone Brings in 52% of Mobile Profits. But Wait! Android is Winning!
By on November 7th, 2011

iPhone 4S

We all know by now that Android’s marketshare is the largest and is dominating, but in reality that doesn’t matter. What matters is the money. It is always about the money. Today, a new report from Analyst T. Michael Walkley with Canaccord Genuity  estimated that Apple took  more than half of the industry’s operating profits in the third quarter of calendar 2011. In fact, that’s a 5 percent increase from the third quarter of 2010,  when Apple’s share of industry operating profits was 47 percent. But wait! Android’s winning, remember? Hate to tell you folks, but Google still isn’t making a dime off Android.

Say what!? A company that only has 4 percent marketshare in the mobile space, is dominating mobile profit front, left, right, and center. Apple’s growth in profit share came even as Apple lost market share. You would think the effect would be the other way around, but I guess not. Mind boggling, indeed. Not really.  The iPhone dipped from a 5.4 percent market share to its current 4.2 percent, while Apple’s copycat Samsung  estimated to have led the industry in  smartphone shipments  for the quarter. Even though Samsung led the industry in smartphone shipments, its profit shrank. Remember, shipped devices does not equal the number of devices sold. Number of devices sold is what brings in the money.

Walkley said he has conducted “channel checks” that show strong demand not only for Apple’s new iPhone 4S, but also for the lower-priced iPhone 4 and iPhone 3GS models causing him to increase his  projected iPhone sales for the December quarter to 29 million, up from 27 million.

You know what’s hilarious with all of these reports? It is alway about iOS vs. Android, while Windows Phone 7 continues to be left out in the dark. Anyway, if all of the mobile companies go under due to winning the market share game due to lack of profits, was it ever a game worth winning?


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Author: Parth Dhebar
Parth Dhebar is a 18 year-old entrepreneur. He is the founder of Simple Reviews, a blog focused on reviewing iPhone and iPad applications. Parth is a recognized name in the industry, known for covering Apple news. He is an editor at Techie-Buzz covering news on Apple. You can follow him on Twitter @pdparticle.

Parth Dhebar has written and can be contacted at parth@techie-buzz.com.
 
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