Tuesday, July 21, 2009

The iPhone & Blackberry -- Short on Market Share; Long on Profits

Ahh, yes, the promise of smart phones -- all the features consumers could ever want. And, for makers of smart phones, hefty operating profits that bring smiles to their faces. At least for Apple and RIM.

While the iPhone and Blackberry together represented only 3% of all mobile phones sold last year, they accounted for 35% of all operating profits according to Deutsche Bank. And, this year should bring even more positive chatter within the halls of the two companies, as their collective share is expected to rise to 5% and 58% of total operating profits.

Why the iPhone and Blackberry and not others? Because Apple and RIM's share of the specific smart phone market -- rather than the overall mobile market -- was 32% in Q1 of this year. And, of course, the overall smart phone market opportunity is expanding at a brisk clip, particularly with the onset of high quality mobile video.