Apple and RIM Taste a Nice Slice of Cake in Industry’s Profit
Apple and Research In Motion, the rising smartphone makers, show their brilliant success once again with considerable profits, despite of their relatively miniature market presence.According to a recent research by Deutsche Bank analyst Brian Modof, the two smartphone-focused companies only accounted for 3% of all cell phones sold worldwide last year, but took in of 35% of operating profits for the cell phone market. Modof further estimates that their market shares will continue to grow, with the sales of cell phones increasing to 5% and the total profits jumping to 58% for this year.
The high subsidies contributed by the carriers are probably why Apple and RIM could earn so much. Modoff calculated that Apple can get around $400 per iPhone, while RIM earns a $200 subsidy from each BlackBerry, compared to the $100 subsidy enjoyed by basic handsets. This means consumers can pay as little as $100 for a smartphone, making the full-featured innovative handsets even more attractive than they already are.
With the remarkable performance of iPhone 3G, BlackBerry Bold and Blackberry Storm, Apple and RIM accounted for 32% of the smartphone market in the first quarter of 2009. Together with others like Palm Pre and T-Mobile G1, smartphones made up 13% of the global cell phone sale, which apparently, is expected to grow dramatically.
However, other cell phone companies are not as lucky as Apple and RIM. Nokia still possess the leading position by shipping 46% of all cell phones and earning 55% of the industry’s profits, but in fact both figures are declining. Motorola and Sony Ericsson are not in a good situation as well, although they still managed to hold their market positions on the top-five list in terms of the market share.
As the balance of power of the market continues to shift, cell phone makers modify their strategies accordingly and put more focus on smartphone business. Nokia, striving to retain its market share, has recently released new high-end smartphones Nokia N97 and Nokia Surge. Sony Ericsson is developing Xperia X2 as a successor of Xperia X1. Other companies, like Dell and Cellular South, are also planning to join the warfare by introducing their smartphones. It seems that the battle will go on intensively and the market will undergo a dramatic transformation in the near future.
Tags: iPhone Accessories, Apple iPhone 3G S Accessories, Apple iPhone 3G Accessories, BlackBerry Accessories, BlackBerry RIM857, RIM957 Accessories, BlackBerry Bold (9000) Accessories, BlackBerry Tour 9630 Accessories, Nokia Surge Accessories
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