RIM and Apple wiping the floor when it comes to operating revenue market share

by Mike
Posted June 1st, 2009 at 11:13 am

Nokia, the once dominant and undisputed mobile phone champ has of late had their market share decimated by the likes of Apple and RIM with Android nipping at their heels as well. While Nokia still has a dominant lead in regards to physical handset units, the real important indicator, their operating revenue market share is taking a beating as Apple and RIM are dominating in this sense. Poor old Nokia, while selling handsets left and right, those handsets are mostly from bottom end, low margin handsets meaning less money for Nokia’s big ‘ol pockets. Deutsche Bank analyst Brian Modoff has created several eye appealing and informative charts showing operating profits and corresponding market shares between various handset manufacturers. The results are pretty interesting.

One piece of information to wrap your head around is that adding RIM and Apple’s revenue market shares together takes up a mind blowing 66% of the entire market! RIM and Apple have definitely been doing their homework and it shows. The two companies are adding new users and adding more dollars to their bank accounts everyday. On the other end of the spectrum, the once dominant Nokia who had a 64% share in 2007, currently sits with a paltry 32% in 2009. Chalk it up to Nokia’s inability to drum up enough interest or high end units to sell/make money off of. They could definitely take some cues from Apple and RIM in those regards.

The major change going on in the mobile market right now is no doubt a result of the increasing focus being placed on software as opposed to just hardware as once was not too many years ago. Apple and RIM seem to be riding that wave of popularity and it agian is paying off for them. So what can we expect? RIM and Apple’s market share will level out at some point leaving other close contenders such as Android and (dear god dare I say) Windows Mobile to pick up some remaining market share. Nokia will continue to lose their credibitliy and market share if they don’t pull a fast 180 and find a way to sell more high margin handset. Do you think they can do it?

Several charts available at Tech Crunch clearly and easily display the quickly changing market in nice to read, colorful charts.

Source: Tech Crunch, Image Source

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