Despite accounting for only 3% of the cellphone market, Apple and RIM account for 35% of operating profits among cellphone makers. With the all the data features bundled into smartphones, not only are they responsobile for current profits, there is a tremendous growth opportunity for for wireless carriers. Deustech Bank analyst Brian Modoff expects the percentage of smartphones to jump to 5% of the market, with operating profits eclipsing 58%.
Apple’s iPhone draws the largest subsidy, at roughly $400 per phone. BlackBerry devices come in at around $200 and pedestrian cellphones at $100. Wireless carriers are more willing to offer higher subsidies considering customers will likely subsribe to more costly plans to take advantage of their phones. With Apple’s recent price break on the iPhone 3G, the sub-$100 iPhone will likely drive new customers into more costly plans. Lower prices and cost of entry will no doubt help boost numbers for Apple in 2009 and beyond.
[via WSJ]
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