Apple Beats Nokia To Become The Most Profitable Mobile Handset Maker In The World
Nokia Vs iPhone
I have a few really amazing stats to share with you. When I saw this I was amazed beyond doubt because this gives a totally new prospective into the way we related market share with the revenue a company posts and vice versa.
Nokia’s Handset Market Share – 37.9% (Source)
Apple’s Hadset Market Share – 2.5% (Source)
The split in the market share seems quite natural and obvious. Apple is bound to have a very low share because it only ships smart phone (the iPhone series).
But here comes the really mind blowing part. According to the results of the research conducted by StrategyAnalytics
Nokia’s Q3 Profit – $1.1 billion
Apples’s Q3 Profit (from iPhone alone) – $1.6 billion
Amazed?
Nokia builds loads and loads of handset, Apple only builds iPhone. Nokia has a very strong presence internationally; iPhone is not a big hit in developing countries (India and China). Nokia handsets work with all the carriers, iPhone? Only with carriers with which Apple has a tie up. Despite AT&T’s awful quality of service in the US the Jesus phone rules the roost and the above stats stand a testimony to it. Single handily, in a span of just 2 years Apple has outshined the largest handset maker in the World. This is what “Insanely great” means & this is what “Think Different” is all about.
When all the companies around are struggling to move ahead after getting past one of the worst economic crisis of their life time, Apple coolly declares that Q4 was its most successful quarter ever. Call it the remarkable business acumen of Steve Paul Jobs or his vision that is driving Apple ahead even in a downturn. The CEO of the decade makes it look so effortless and miraculous. This Apple-Nokia thing is just one of those feathers in his cap; don’t go on looking for more you might just get lost in the jungle.
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Man of The Decade
[Via Telephony Online]
Why did you use a mockup render of something that almost looks like an iPhone instead of a real one?
(Twitter: @ mayank25may )
says:
That wasn’t intention… The purpose was to use an image of both Nokia and iPhone.
(Twitter: @ mayank25may )
says:
Actually… I still couldn’t figure out that it is a mock up and not the real iPhone… anyways thanks for pointing out…!
Unfortunately. this article contains some serious flaws.
1. The profit for Apple was $1.67B for its fourth fiscal quarter, totally (not just iphone). Just follow the link in the article and read the first sentence. “Apple® today announced financial results for its fiscal 2009 fourth quarter ended September 26, 2009. The Company posted revenue of $9.87 billion and a net quarterly profit of $1.67 billion…”.
2. Gartner says that the total worldwide market is 1 B units. (http://www.gartner.com/press_releases/asset_132473_11.html). Allowing some flexible counting 16M units equates 64M per year. At 40% market share, this gives a total market size of 160M units.
However, it would fit fairly well with the US market.. It’s problematic to assess the correctness of this since the most important source is not publicly available.
Also to consider, Nokia is suing Apple for using their IPRs (estimates say for up to $1B). I can’t assess the likelihood of Nokia winning this but it does correspond to a major part of Apples total profits for a whole year that would be moved from Apple to Nokia.
(Twitter: @ mayank25may )
says:
The article says
“Apples’s Q3 Profit (from iPhone alone) – $1.6 billion” and NOT Q4. These numbers come from an independent research conducted by Strategy Analytics (I have given the link in my post). You might also like to check out similar reports (with a different prospective) published by Reuters http://www.reuters.com/article/COMSRV/idUSN1051937420091110 .
I am still unclear with your second point. I dont find it related with the article. Can you please clarify? + the link you have given is prediction report published in 2005…!
As far as Nokia suing Apple and hence forth we should calculate Apple’s profit by reducing that hypothetical number (if Nokia wins the law suite) from Apple’s profit – hypothetical and hence irrelevant with the current context.