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Report: Apple Took 32% of Cell Phone Profits in First Half of '09

Authored by Mark Hefflinger on August 6, 2009 - 9:22am.
New York - Apple (NASD: AAPL) took nearly one-third of all handset industry profits during the first half of 2009, despite being only the fifth-largest vendor, All Things D reported, citing Bernstein Research analyst Toni Sacconaghi.

"Our analysis indicates that Apple's iPhone accounted for only 8% of handset industry revenues but 32% of industry operating profits in 1H09," Sacconaghi said.

"Even if we exclude the operating losses generated by Motorola and Sony Ericsson, Apple still accounted for 25% of industry profits. iPhone's success is akin to Apple's position in the PC industry -- where the company enjoys an estimated 25% of industry profits, despite capturing only 6% of industry revenues."

The analyst suggested that Apple lower the cost of the iPhone to see even bigger profits.

"We believe Apple will ultimately need to lower price (and margins over time) to expand its addressable market opportunity, including offering a lower-cost, non-data plan iPhone," Sacconaghi said.

 

Related Links:
http://snipurl.com/oxgkj (AllThingsD)

http://www.bernsteinresearch.com

Published in DMW Daily, August 6, 2009
tags: Mobile | Reports | Apple | Research | iPhone | Bernstein Research |



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