Apple owns 8.8% of cell phone market, 73% of cell phone profits

Apple owns cell phone profits

After posting the most profitable quarter in technology company history to close 2011 — and the second most profitable quarter among all companies, ever — Apple came back again in the first calendar quarter of 2012 and managed another monster quarter. The Cupertino, California-based technology giant earned $11.6 billion on $39.2 billion in sales during the second fiscal quarter of 2012, and its iPhone was responsible for an estimated 80% of all smartphone profits during the quarter. According to Apple watcher Horace Dediu, Apple’s share of all cell phone profits was nearly as overwhelming.

Market research firm IDC states that Apple’s share of the global cell phone market was flat at 8.8% last quarter. Despite accounting for such a small portion of global cell phone shipments, Apple’s share of all mobile phone profits reached 73% in the quarter.

“The new market disruption is the migration of a large number of demanding customers away from phones-as-voice-products to phones-as-computing-products,” Dediu notes as one of the driving factors behind Apple’s performance. The analyst also states that Samsung accounted for 26% of all major handset vendor profits last quarter, while Sony, Nokia, Motorola, LG and RIM all lost money and HTC was roughly even.

[Via CNNMoney]

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