iPhones Dominate SmartPhone Global Profits


Figures clearly show a conundrum in the smartphone market when it comes to the Apple iPhone. Although the iPhone only accounts for 4.2% of the worldwide smartphone market the numbers show that it manages to claim as much as 52% of the overall market profits.

Even more surprising is that market analysts are predicting Apple will increase this claim moving into the high spend festive quarter. It is thought Apple could rake in as much as 60% of the market in the pre-Christmas boom. This means that they will have increased their sales of the iPhone to 29 million, 3 million more than they predicted at the beginning of the year.

How can this happen and just how on earth have Apple managed it?

The Competitors

One of the key reasons why Apple are cornering the market seems to be down to the competition. Apple have always been experts at predicting the market and releasing new technologies earlier than any of their competitors. This has never been more advantageous than with the iPhone 4S.

  • Apples closest competitor, Nokia, is currently in a transitional stage. They recently abandoned their homegrown technology Symbian and have moved towards Microsoft 7.
  • This has been met with some resistance in the market and Nokia have seen many users moving away to competitors.
  • Despite determined effects to rake back more sales Nokia, Sony, LG, HTC, Motorola and RIM are still achieving under 10% of the overall market profits.
  • Samsung have made a good impression on the market with the Intensity II. However this achieved just a 29% market share of the profits.
  • It seems Samsung’s marketing campaign for the Intensity II fell short and the iPhone is still very much seen as the ‘one to have’ when it comes to the latest generation smartphones.
  • The death of Apple bigwig Steve Jobs has also had an effect on the market, putting the iPhone and other Apple products firmly in the public eye.
  • Apple have seen a boost not just in Apple 4S sales but also with older offerings, the Apple 3GS being the second biggest selling smartphone during the third quarter of 2011.

Next Year – 2012

Next year though, it is likely Apple will not have things their own way. Samsung has been gradually clawing its way ahead and sales are gaining momentum. The simple fact is that Samsung, Nokia and Motorola are producing great smartphones that should be able to compete with the iPhone. There is only so long that Apple can hold these great products back with the iPhone 4/4S.

The combined might of Nokia and Microsoft is also a big threat to Apple’s leading market share. These two big brands are aiming to make a second big push for their Windows Platform phone moving into 2012. Word on the street is that this could be a serious contender for the top spot. Motorola, Samsung and HTC all have some big hitting releases on the horizon and market analysts are predicting that the battle of the smartphones is just about to be upgraded to a full scale war.

Apple are not holding back themselves though. They have plans afoot to release the iPhone 5 in the latter part of 2012.Although little information is available on the iPhone 5 at the moment market experts are predicting it will be another rather large goldmine for Apple.

Matt Beswick runs his own web design agency in London, and lists among his clients No.1 Traveller, who operate airport lounges at the major London airports.

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