Fortune is reporting on a research done by T. Michael Walkley, a Canaccord Genuity analyst, that finds Apple is doing great in terms of profit compared to other mobile phone manufacturers. In the first half of 2010 Apple sold 17 million iPhone units, which is a fraction of the over 400 million mobile phones sold by the likes of Nokia, Samsung, and LG. However, Apple more than makes up for their small market share with profit share of 39% with the other three companies grabbing only 32% combined.
We are also impressed with Apple’s ability to monetize its innovative products through selling high-margin consumer products that drive strong earnings results and growth trends for Apple shareholders. A case in point is the mobile phone market, where most handset OEMs struggle to post a profit or even 10% operating margins (except RIM and recently HTC), while we estimate Apple boasts roughly 50% gross margin and 30%+ operating margin for its iPhone products.
Walkley also states that Apple “leads the industry in every metric except for unit share.”
Apple absolutely dominates in mind share, but no one ever seems to mention that.
Image courtesy of Fortune.
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