Blog Post

iPhone snags two-thirds of mobile industry profits

In the last year, without introducing a new handset model, Apple (s AAPL) has gone from being responsible for half of the mobile industry’s profits, to accounting for two-thirds of that growing pile of cash. The analysts over at Asymco came to that conclusion after compiling all major handset makers’ second-quarter 2011 earnings data, and posted some great graphs depicting the mobile profit landscape on Friday.

As the graph above shows, the picture today is quite different from 2007, when Apple first introduced the iPhone, and Nokia (s nok) was the undisputed king of mobile. Four years later, of the top mobile vendors, Apple has two-thirds of the profits.

It’s also interesting that while Samsung is hot on Apple’s trail in smartphone sales (with just over 19 million sold last quarter compared to Apple’s 20 million), the Galaxy-maker is far behind Apple when it comes to actually reaping profits from device sales, with just 15 percent of mobile profits for the quarter. After Samsung comes beleaguered RIM (s rimm) with 11 percent, and HTC with 7 percent.

Check out Asymco for a full breakdown of the industry’s most recent quarter.

Thumbnail courtesy of Flickr user Tracy O. Chart from Asymco.

7 Responses to “iPhone snags two-thirds of mobile industry profits”

  1. Ormy Underhill

    Truly a ridiculous headline. One may capture a % of market share, but profit is an internal corporate component. Don’t try so hard.

    • His Shadow

      Truly an idiotic hand wave. Apple is decimating the competition in the only thing that really does matter: making money that keeps a company competitive and able to develop new technologies. Androids market share means absolutely nothing if the manufacturers thereof can’t stay in business.

    • Are you dense? Those “evil” profits allows companies to develop disruptive products that come out of nowhere, like the iPad. You can’t spend hundreds of millions of dollars over many years to R&D something like the iPad before you sell even a single unit.

      You know what the real travesty is? That the rest of the industry is so unprofitable that their R&D is taking a look at what Apple does and copying it, from function to design.

    • Apple sells only high end phones (well, the 3GS is more mid-range now) with high margins, while Samsung sells phones from high end smart phones to basic feature phones, which have very slim margins. Also, profits are often highly variable and can be highly affected by short term events, are are often seasonal–many consumer goods companies have their best profits in Q4 (e.g. Christmas) with Q2 being quiet; but Apple’s 2011Q2 is bigger than their 2010Q4!