30 Months ago (Jan 22nd 2008) I wrote this post is Seeking Alpha. It predicted that Apple will Dominate Key CE Markets. Later on November 4th 2008, I predicted that Apple will lead the mobile phone market in terms of Value.
In this post I will demonstrate that Apple is already the #1 handset manufacturer globally in terms of profits. In terms of Revenues and Volume, there is still way to go for Apple.
Apple (AAPL) released its 2nd quarter report a month ago. It was another great quarter for Apple..
Apple reported revenues of $5.33B on 8.4M handsets (635$ per unit). Nokia reported revenues of 10.03B$ on 118M handsets (85$ per unit). In terms of Profits, Nokia reported 227M USD (1.93$ per handset!) compared to an estimate of 1.104B$ for Apple (131.4$ per handset). For every Iphone that Apple sells today, Nokia needs to sell 7.47 units to match in terms of revenues and 68 devices to match them in terms of profits.
Apple profit per unit is 68 times higher than Nokia! Apples total profits are 4.86 times Nokia’s total profit!
I claim that symbian is a big burden on Nokia. It is clear that the market is getting SMARTER and Apple OS and Android will continue to guide the way. If current trends remain and Apple will manage to overcome the Iphone 4.0 crisis, apple might pass Nokia in terms of Revenues in the next 24 months.
