Chart: While Competitors Sell 20x More Phones, Apple Makes Most Of The Industry’s Profit

Chart: While Competitors Sell 20x More Phones, Apple Makes Most Of The Industry’s ProfitAre you wondering how a company like Nokia can, on the one hand, claim that it is selling more smartphones every day than the iPhone, and yet be kicking its CEOout the door like a mangy dog? These pie charts ought to make everything crystal clear.

Advisory firm Canaccord Genuity told investors to buy, buy, buy Apple stock on Tuesday, targeting Apple’s price at $356 per share… and to give investors an idea on why they were so excited about Apple’s prospects, they accompanied their note with the following observation: even though Apple only sold 17 million handsets in the first half of 2010, Apple has pulled in 39% of the mobile sector’s profit.

Meanwhile, Nokia, Samsung and LG sold 400 million phones last year — over twenty times as many handsets as Apple sold iPhones — and yet their profit was dwarfed by Apple’s in the same period.

As Canaccord Genuity analyst T. Michael Walkley notes, “[W]where most handset OEMs struggle to post a profit or even 10% operating margins… we estimate Apple boasts roughly 50% gross margin and 30%+ operating margin for its iPhone products.”

No wonder the boards of companies like Nokia are lopping off their key executives’ heads and bowling them out the door.

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About the author

John BrownleeJohn Brownlee is a Contributing Editor. He has also written for Wired, Playboy, Boing Boing, Popular Mechanics, VentureBeat, and Gizmodo. He lives in Boston with his girlfriend and two parakeets. You can follow him here on Twitter.

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