Apple and RIM Are Making Serious Money

Apple and RIM account for only 3% of the cellphone market but they make 35% of the profits, according to a WSJ report.

Deutsche Bank analyst Brian Modoff says the disparity will become even greater this year when the two companies take 5% of the market generating 58% of total profits.

Manufacturers of basic phones make virtually nothing, unless they have enormous scale. Nokia, the industry leader, manufactured 46% of the units sold last year but earned 55% of the profits, Mr. Modoff calculated. Even Nokia is hurting. It long has been the top smart-phone maker, but its share in that market has been declining. It reported a 66% drop in quarterly profits on Thursday.


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