According to research done by Toni Sacconaghi of Bernstein Research, Apple—while only the 5th largest mobile phone vendor#151;contributed to 32% of the industry operating profits in the first half of 2009. Though its overall revenue is only a scant 8% of what the entire cell phone industry produces, Apple is profiting heavily, much like it has been in its $1,000+ computers. The number is slightly lower (only 25%) if the operating losses generated by Motorola and Sony Ericsson are included into the calculations. These numbers are incredible, especially since Apple is the newest producer of cell phones amongst Nokia, RIM, Sony Ericsson, Samsung, LG and Motorola.
Sacconaghi believes that Apple’s head start in creating the iPhone and the iTunes/App Store ecosystem around it has given it a considerable leg up on the competition. Sacconaghi, continues, “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.”
Get on it Apple…please?
Read [All Things Digital]