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iPhone Grabs Great Percentage of Smartphone Profit

Apple’s iPhone may not have the largest share of the smartphone market, but it certainly grabbed a hefty piece of the profits.

According to Bernstein Research analyst Toni Sacconaghi, who was quoted in an AllThingsD post, Apple managed to take 32 percent of the overall profits for the smartphone market. Sacconaghi also said in a research note to clients that Apple achieved that percentage of profit while only accounting for 8 percent of the industry’s revenue, according to the report.

Sacconaghi goes on to talk about the advantages Apple has in the smartphone market, particularly the ecosystem it has developed in the App Store over the past year. Apple said in mid-July that it had 65,000 apps in the store and users had downloaded more than 1.5 billion apps in the first year the store was operational.

The iPhone’s popularity is evident in the company’s quarterly earnings posted on July 21. Apple reported selling 5.2 million iPhones, a 626 percent increase over the same period last year.

“Apple has the potential to become a de-facto standard of sorts in the consumer smartphone market, much like it became in the portable media player market with iPods, due in large part to its first mover advantage and tight software and hardware integration,” said Sacconaghi, in the AllThingsD post.

The integration is something that Apple has lauded as an advantage it has over its competition for many. From the days of the Mac and applications like iPhoto and iMovie, to the iPod’s integration with iTunes and the music store, Apple has always tried to give users a simple way to interact with its hardware and software.

This entry was posted on Thursday, August 6th, 2009 at 2:56 am and is filed under Apple News, iPhone News & Updates. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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