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Apple Will Grab Most Of The Profits !

Google will control half of the market for smartphone software within the next five years, according to a research note from PiperJaffray Tuesday. Apple’s iPhone will top out with between 20 and 30% of the market, but will get most of the profits. Nokia and Research In Motion, by contrast, don’t have the “software competency” to keep up, the report’s authors argue, and will have to adopt software from Google or Microsoft .

That’s thanks to a blitz from Google that has put its software on 80 smart phones. The result: PiperJaffray estimates Google controlled 15% of the smartphone software market in the second quarter, compared to Apple’s 14% share. That’s a huge leap, for Android, from 9% during the first quarter of 2010, and 1% during the second quarter of 2009, according to PiperJaffray. Apple will sell 11 million iPhones in the third quarter. The same number of phones will ship with Google’s Android software.

While most smart phones will run Android, however, Apple will grab most of the profits. Apple’s iPhone generated $1.5 billion in operating income in the first quarter of 2010 alone, according PiperJaffray’s analysts. By contrast, Android will only contribute $1.35 billion in revenues for Google in 2012.

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This entry was posted on Wednesday, September 8th, 2010 at 4:04 am and is filed under Apple News. 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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