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Horace Dediu of Asymco recently posted a very intriguing analysis of top mobile vendors that showcases the following: total profits coming from the mobile device market remained static, somewhere below $6 billion every single quarter for the last few years. But that is history now. Since the iPhone 4S has been released the story has been altered from the core.
During the past two years the mobile profits have increased from $5.3 billion to the current $14.4 billion during the first quarter of 2012. The company to occupy the first spot has been Apple. Nothing changes with this new report, as the Cupertino group snatches the majority of all profits. Nevertheless compared with the magnificent fourth quarter Apple had last year, the company saw a slight drop, from the groundbreaking 75% to 73%.
The competition is way behind, as Samsung cell phone shipments accounted for 23.5% of market share and 26% of global mobile phone profits. RIM, Nokia, Sony, Motorola and LG on the other hand are at a loss.
Back when Apple first introduced the iPhone in 2007, Nokia was the undeniable market leader, and companies like Sony Ericsson, LG, RIM and HTC were all doing pretty good and had profit. Since then the iPhone has managed to shutter this balance with its overwhelming power. Horace Dediu elaborated,
"The industry is rewarding those who can supply computers-as-phones which preserve the cash flows of what is essentially a trillion dollar data services business. Vendors which cannot offer this solution saw their businesses implode. At least on the high end."
By Radu
Source: Apple now earning 73% of global mobile profits with just 8.8% unit share
