Apple, BlackBerry grab 35% of global profits

iPhone and BlackBerry to take 58% of mobile profits this year

Apple's iPhone and RIM's BlackBerry smartphones may be tiny players in terms of market share but they command a giant slice of mobile profits. In 2008 the two accounted for just 3 percent of all global mobile phone sales but 35 percent of operating profits, according to Deutsche Bank analyst Brian Modoff. In 2009 he estimates that the two smartphone makers will take 5 percent of the market in unit terms but 58 percent of total operating profits.

Modoff is quoted in today's Wall Street Journal, which points out that while smartphones account for only about 13 percent of total mobile phone sales globally, the segment is growing - despite a decline in the whole mobile market. IDC estimates that Apple and RIM had about 32 percent of the smartphone market between them in the first quarter of 2009.

Apple iPhone 3GS review

BlackBerry reviews

" Underlying the winners-take-all nature of the market are fat subsidies from phone carriers, particularly in the US, which lets manufacturers maintain hefty average selling prices even as consumers pay as little as $100 a smart phone - not much more than for many basic phones. The higher subsidies reflect the carriers' ability to charge higher monthly plan prices for phones that can easily surf the Web or handle email," writes the WSJ.

The iPhone, exclusive to AT&T in the US and whose users are the heaviest Web surfers, draws the biggest subsidy, at about $400 a phone, calculates Modoff. BlackBerries draw average subsidies of $200 from US operators. Basic mobile phones get barely $100.

Palm is trying to break into this lucrative market with its Pre touchscreen 3G smartphone, and both Dell and Acer have also stated their intent to join in.

Palm Pre review

Both tech companies are suffering from slumping laptop and desktop sales. IDC research shows that while netbooks are experiencing rapid growth this year, it is not sufficient to make up for declining PC sales.

Palm Pre vs Apple iPhone 3GS

10 things we want to see in iPhone OS 4.0

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags Applemobile phonessmartphonesRIM BlackBerry

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Lexton Snol

PC Advisor (UK)
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?