Android may well be on top of the platform market, but none of Google’s hardware partners are close to taking Apple off pole position in the battle for profit. Apple, yet again, has closed a financial quarter with over 50% of the mobile industry’s profits (and that’s not just smartphones). Two separate analysts, T. Michael Walkly of Cannacord Genuity and Asymco’s Horace Dediu both have Cupertino down over the 50% mark. Dediu estimates a generous 56% (1% down from the previous quarter – due to people holding out for the iPhone 4S), Walkley estimates a slightly more conservative 52%. Either way, it’s incredible that one company – with only two phones out at the time can rake in such a large chunk of profits. Its nearest competitor was Samsung with 29%. After that the nearest challenger is HTC with a measly 9%.
“In an epic reversal of fortunes, Mr. Walkley pointed out that in 2007, Nokia had 67% of operating profits while Apple had just 4%. Today, while Apple has 52% of industry profits, Nokia has been relegated its rivalâ€™s former position with just 4% of operating profits.”
It goes to show how far the Finnish phone manufacturer has plummeted. Back when I was first in to phones – in the late 90s – Nokia was the brand of choice. It delivered funky, fashionable phones that were reliable and customizable alongside some premium business handsets that were unmatched for quality. It all changed for Nokia when the smartphone era began. These results are great for Apple, not so great for the old dog, Nokia.