iPhone 4S Release Date: iPhone Helps Apple Take Over Half of All Smartphone Profits

By CP News Briefs, Monday, November 07, 2011

The iPhone has given Apple more than half of the mobile phone industry’s overall profits, reports have indicated.

Although the smartphone accounts for just 4.2 percent of the global mobile phone market share in the third quarter of this year, the company has still managed to rake in 52 percent of overall market profits, according to Canaccord Genuity.

Analyst Michael Walkley said that it was “remarkable” such a big share of the profit had been generated.

He claims the company is poised to claim an even larger share in the December quarter.

Apple is predicted to take at least 60 percent with 29 million iPhone sales, up from the firm’s earlier estimate of 27 million.

Analyst Michael Walkley said Apple will hold an even larger share by the fourth quarter. Apple is predicted to sell 29 million iPhones, accounting for at least 60 percent of profits.

“'With Nokia in the midst of a challenging smartphone strategy transition and our checks indicating RIM and Motorola Mobility continue to struggle in North America given the increasingly competitive Android smartphone market, we believe Apple will gain further value share in the December quarter and could capture over 60 percent of industry profits,” said Walkley.

Samsung accounted for 29 percent of handset profits. Apple and Samsung dominate the smartphone market, making 81 percent of the overall profit combined.