toggle

AAPL Stock: 121.3 ( -1.07 )

Printed from http://www.macnn.com

Apple, RIM account for massive cellphone profits

updated 11:35 am EDT, Mon July 20, 2009

Apple, RIM reap profits

America's Apple and Canada's Research in Motion now account for a disproportionate amount of global cellphone profits, says Deutsche Bank analyst Brian Modoff. Although together the companies produced only 3 percent of phones sold worldwide in 2008, profitwise, the companies accumulated 35 percent of all operating profits. The largest player in the market reamins Finland's Nokia, which produced 46 percent of phones and 55 percent of profits in 2008.

2009 is forecast to be another banner year for Apple and RIM, with the pair growing to 5 percent of units and a dominant profit share, near or over 58 percent. Behind the companies' unusual clout is believed to be subsidies; AT&T pays Apple roughly $400 for each iPhone, while overall US payments to RIM average $200 for each BlackBerry. By comparison, the average non-smartphone subsidy is only $100.

Modoff notes that Apple and RIM have also unusual advantages unrelated to hardware. The former has thousands of independently-made software titles, more than for any other cellphone. RIM is meanwhile linked with a proprietary e-mail service, considered more secure and efficient than many options. Unknown so far is the impact of the Palm Pre, which offers advantages of its own, such as true multitasking.




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

  1. climacs

    Joined: Dec 1969

    +2

    suck on that ballmer

    anyone care to dig up some choice Ballmer quotes from 2 years back, pissing all over the iPhone and how it's much more meaningful to have your mobile OS widely distributed rather than how many handsets you sell???

  1. Tanker10a

    Joined: Dec 1969

    -1

    Heere's Ballmer

    Microsoft CEO Ballmer laughs at Apple iPhone

    http://www.youtube.com/watch?v=C5oGaZIKYvo

    There's your sign!!!

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

HP 14-x030nr 14-inch Chromebook

If you're like us, chances are you've come to realize that you need the ability to access the Internet on the go. Also, you've prob ...

15-inch MacBook Pro with Force Touch

Apple's 15-inch Retina MacBook Pro continues to be a popular notebook with professional users and prosumers looking for the ultimate ...

Typo keyboard for iPad

Following numerous legal shenanigans between Typo -- a company founded in part by Ryan Seacrest -- and the clear object of his physica ...

toggle

Most Commented