Apple's iPhone might get only 8 percent of the revenues generated by the mobile handset revenue but its ruthless efficiency is such that the smartphone accounts for a disproportionately high 32 percent of the industry's profits.
In other words, one pound (or dollar) out of every three pounds (or dollars) the mobile phone industry generates goes in Apple's pockets during the first six months of 2009. This is according to a research carried out by Bernstein Research analyst Toni Sacconaghi and published by Digital Daily.
The analyst reckons that the mobile industry generated around $66 billion in the first half of the year with an operating profit of $6.4 billion. Whjile Apple accounted for only $5 billion worth of revenues, its operating profits reached more than $2 billion.
The current situation is reminiscent of the opsition of Apple in the PC market where the company earns 25 percent of the industry's profits while generating only 6 percent of the revenues.
Sacconaghi suggests that it will be extremely difficult to dislodge Apple because it has already established itself as the de-facto standard in the consumer smartphone market, adopting the same strategy that made it a winner in the portable audio market with the iPod.
Apple, Sacconaghi continues, will adopt a top down approach and introduce cheaper and simpler iPhones in the future as it maintains its grips on the lucrative, high end market and explores more mainstream segments.
Bernstein Research figures also show that Apple has the biggest operating profit of all handset manufacturers edging Nokia which has an operating profit of just over $1.92 billion although its revenue, at more than $17 billion is three times bigger than Apple.