Seems like the "advocate" predictions in COLA couldn't have been further
from the truth. Apple is now capturing 75% of the profits in the worldwide
mobile industry which leaves ALL of the Android makers combined to fight for
the remaining 25%.
Or to put it another way. Apple makes 3x as much profit from the iPhone as
ALL of the Android makers combined.
This should give a hint why Nokia decided to go with WP7 instead of making
yet another "me too" commodity Android device.
Android's original standard bearer -- HTC -- falls from grace
By Philip Elmer-DeWitt
February 6, 2012: 6:42 AM ET
Squeezed by Apple and Samsung, it had a bad quarter and expects the next to
How the mighty have fallen.
On Monday, HTC reported a 26% drop in fourth quarter profits and warned that
revenues could drop 36% this quarter. Despite promises that the company
would bounce back on the strength of four new models to be introduced at the
Barcelona Mobile World Congress, the stock closed 5% lower in Asian trading.
"Our weakness in first-quarter guidance ... comes from facing competition in
the U.S. from iPhone and Samsung," CFO Winston Yung told analysts in a
conference call. He declined to provide unit sales numbers.
According to IDC, Samsung is now the No. 1 maker of smartphones in terms of
shipments, both in the U.S. and worldwide (see here). But Apple is taking an
ever larger share of the profits. In the December quarter, according to
Asymco's Horace Dediu, Apple's iPhone captured 75% of worldwide profits in
mobile phones -- smart or dumb -- with only an 8.7% market share, leaving
precious little on the table for companies like HTC.