Apple And RIM Have 3% Of Cell Phone Market, But 35% Of Profits

iphone blackberry keyboard

Apple (AAPL) and BlackBerry maker RIM (RIMM) accounted for 3% of the world cell phone market last year, but 35% of its operating profits, Deutsche Bank analyst Brian Modoff estimates in a report summarized by the WSJ. (We published similar data from Modoff as our “Chart of the Day” on June 1.)

This year, the two companies share could grow to 5% of the cell phone market, as measured by units shipped, but 58% of the market’s operating profits.

Smartphones account for 13% of the global mobile phone market, and Apple and RIM held 32% of the smartphone market in Q1 ’09, according to IDC estimates, via the WSJ.

The biggest advantage the two companies have is the subsidies phone carriers offer on their smartphones. According to Modoff’s calculations, iPhones get a $400 subsidy and Blackberries get an average of $200 per phone. Basic mobile phones get a $100 subsidy and hardly make any money. As a result, Nokia, which made 46% of all mobile phones sold last year, got just 55% of the industry’s profits, Modoff estimates.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.