iPhone 4S Helps Apple Rake In 73% Of Mobile Phone Profits

iPhone 4S Helps Apple Rake In 73% Of Mobile Phone Profits

Apple continues to account for most of the mobile phone industry's profits.

When analysts and companies compare mobile devices, the big number everyone focuses on is how much market share each platform or product has in relation to its competitors. While this makes for a good overall view of the playing field, it doesn’t always give a clear or accurate picture of which companies are doing well on a single metric as a model for success and ignores others, like whether a platform or manufacturer managed to turn a significant profit.

This is, of course, a very big point when discussing Apple’s iOS succes compared to Android as a whole or to individual manufacturers – and something that Asymco’s latest review of the mobile phone market in which Apple accounts for a small 8.8% of handsets but reaps a whopping 73% of the industry’s profits.

The news isn’t entirely surprising, Apple leverages its supply chain very well, and has significantly better margins on the iPhone than most other cell phone makers. Apple also has a great deal of leverage with carriers when it comes to iPhone terms and pricing.

iPhone 4S Helps Apple Rake In 73% Of Mobile Phone Profits

Operating profits show clear impact from iPhone 4S.

Asymco’s Horace Dediu makes another important point – Apple isn’t really taking profit away from its competitors. Rather, the company has created a “vast new pool of profits” and that a large bulk of Apple’s current profits come from carrier premiums related to the wildly successful iPhone 4S.

Beyond Apple, Samsung and HTC were the only companies that generated a profit in the industry. Samsung, which is becoming the primary Android manufacturer in many markets, accounted for 26% of mobile phone profits while HTC accounted for 1%. RIM, Nokia, Sony, LG and Motorola all lost money.

Via Fortune, Images Asymco

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  • Steffen Jobbs

    I guess the tech-critic jackasses were dead wrong about consumers not buying a rehashed iPhone 4.  They did indeed say that the iPhone 4S was destined to fail against the dozens of feature-rich models of Android smartphones.  I feel certain the same jackasses will say the same thing about the next iPhone model and maybe I should consider that a positive thing.  Yes… Android is winning alright.  I’d hate to see what the platform would be worth if it were losing.

  • ApplePr0n

    ^ ouch haha. That would really smack me speechless if I were a phandroid lol.

About the author

Ryan FaasRyan Faas is a technology journalist and consultant living in upstate New York who has written extensively about Apple, business and enterprise IT, and the mobile industry. In addition to writing for Cult of Mac, he is a contributor to Computerworld, InformIT, and Peachpit Press. In a previous existence he was a healthcare IT director as well as a systems and network administrator. Follow Ryan on Twitter and Google +

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