All Things Digital is reporting that Apple has 32% share of the Cellphone industry’s operating profits for the first half of 2009. This information comes from Bernstein Research analyst Toni Sacconaghi. Mr. Sacconaghi goes on to state that this spectacular profit share is due to the fact that the iPhone has a high margins, and average selling […]
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Apple Estimated to Have 32% of Cellphone Industry Profit for First Half of 2009

Aug 6th 2009 by

All Things Digital is reporting that Apple has 32% share of the Cellphone industry’s operating profits for the first half of 2009. This information comes from Bernstein Research analyst Toni Sacconaghi. Mr. Sacconaghi goes on to state that this spectacular profit share is due to the fact that the iPhone has a high margins, and average selling price. The iPhone only accounts for 8% of industry revenue and less than 2% of industry wide unit sales.

“Our analysis indicates that Apple’s iPhone accounted for only 8% of handset industry revenues but 32% of industry operating profits in 1H09,” Sacconaghi wrote in a note to clients today. “Even if we exclude the operating losses generated by Motorola and Sony Ericsson, Apple still accounted for 25% of industry profits. iPhone’s success is akin to Apple?s position in the PC industry?where the company enjoys an estimated 25% of industry profits, despite capturing only 6% of industry revenues.”

If you remember not too long ago, there was an estimate by Deutsche Bank analyst Brian Modoff, who stated that Apple had 20% of the cellphone industries profits in 2008. Modoff numbers also coincide nicely with Sacconaghi’s in other respects. Modoff expects Apple and RIM to hold 58% profit share in 2009, Sacconaghi estimates 54%.
No matter how you slice it, these numbers are impressive.

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