Report: Apple, RIM smartphone wring huge profits
Apple and Research In Motion to bring big bucks from their smartphones, thanks in large part to heavy subsidies from the photographs taken of carriers, said the report in the Monday Wall Street Journal.
  Last year, Apple and RIM was only 3 percent of world sales of photographs taken, but took in 35 percent of operating profit in the market, according to Deutsche Bank analyst Brian Modoff. This year Modoff expects mobile market to the two companies will increase to 5 percent, and the victory of 58 percent of total operating profit, according to the magazine (subscription required).
High subsidies mandated major players like Apple and RIM means that consumers may pay only a $ 100 smartphone. In the Apple iPhone has the biggest check of subsidies at about $ 400 phone, it is estimated Modoff. RIM BlackBerrys in the company earning about $ 200 subsidy. Unlike the basic CellPhones receive $ 100 grants.
In photographs taken of carriers are on the subsidy to consumers in the form of higher prices for the monthly plans, especially for smartphones, which can be viewed on the internet and collect e-mail.
The market for Apple profit reflects a shift in the direction of a smartphone, which are the feature-rich and easy to use, said the magazine. Smartphones account for only about 13 percent of world sales of photographs taken, but the market is growing. Between them, Apple and RIM, won about 32 percent of the market of smartphones in the first quarter.
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In windfall between Apple and RIM is happening at the expense of other players, said the magazine. Nokia, once at the beginning of Smartphone Maker, was hit with a decline in market share and lower profits. Sony Ericsson also hurt, reporting a loss for the fourth quarter. Companies like Palm, Acer and Dell also face an uphill battle to break the smartphone market dominated by Apple and RIM.
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Tags: Apple, Blackberry, iPhone, Research In Motion, RIM, Wall Street Journal
