Apple is Earning Much More Than Its Share...
"Research from Deutsche Bank analyst Brian Modoff showed that Apple
and Research in Motion together accounted for approximately 35% of
the cellphone industry's total operating profit in 2008 while only
representing 3% of total unit sales. Apple's share of industry
profits clocked in at approximately 20% while holding only just over
1% of the unit market share. The two companies' outsize share of
profits underlines the shift in the wireless industry toward feature-
rich devices accenting easy-to-use software and away from an emphasis
on hardware... Moreover, Modoff estimates that Apple and Research in
Motion will reach a combined 5% of unit sales for 2009, raking in
roughly 58% of the total industry profit between them."
"The report notes that wireless carrier subsidies provide the driving
force behind such large profits for leading smartphones such as
Apple's iPhone and Research in Motion's BlackBerry lines. Apple
reportedly receives about $400 in carrier subsidy for each iPhone,
while BlackBerry sees about $200 and the typical basic cellphone
about $100."
Wow!
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