RIM and Apple hold 3% of the wireless market, 35% of profits

Deutsche Bank analyst Brian Modoff fed some figures to the Wall Street Journal this morning and to say they speak volumes for the effectiveness of both RIM and Apple’s strategies is a gross understatement. Two companies, 3 percent of the global cell phone market, 35 percent of the operating profits. Sheesh. It’s no mystery that [...]

Deutsche Bank analyst Brian Modoff fed some figures to the Wall Street Journal this morning and to say they speak volumes for the effectiveness of both RIM and Apple’s strategies is a gross understatement. Two companies, 3 percent of the global cell phone market, 35 percent of the operating profits. Sheesh. It’s no mystery that both companies have hit the industry hard of late but if this statistic doesn’t speak volumes for the success both have been experiencing, we don’t know what does. While Apple’s next handset release is about a year away, the company continues to bring its iPhone 3GS to new markets where it has yet to receive anything but an enthusiastic welcome. RIM on the other hand, has several highly anticipated devices still to come this year including the Storm 2, Bold 9020 (Onyx) and the Magnum. In a nut shell, both companies are well positioned to push that number up toward the 40 percent mark and possibly beyond before the year is out.

Beyond the dynamic duo that is RIM and Apple, Nokia is the only other player represented on the chart above showing a profit share that outreaches its market share and it still owns the lion’s share of each. As we reaffirmed last week however, all is not peachy up in Finland these days. And then we find Samsung and LG, two companies that combine to make up over 30 percent of the global cell phone market but only about 20 percent of the profits. Last and unfortunately least, there’s Motorola. Ouch, Moto.

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