Report: iPhone grabs 32 percent of smartphone profit

Despite only having only having an 8 percent share in the smartphone market, Apple walked away with 32 percent of the profits for the industry, according to AllThingsD.

Apple's iPhone may not have the largest share of the smartphone market, but it certainly grabbed a hefty piece of the profits.

According to Bernstein Research analyst Toni Sacconaghi, who was quoted in an AllThingsD post, Apple managed to take 32 percent of the overall profits for the smartphone market. Sacconaghi also said in a research note to clients that Apple achieved that percentage of profit while only accounting for 8 percent of the industry's revenue, according to the report.

Sacconaghi goes on to talk about the advantages Apple has in the smartphone market, particularly the ecosystem it has developed in the App Store over the past year. Apple said in mid-July that it had 65,000 apps in the store and users had downloaded more than 1.5 billion apps in the first year the store was operational.

The iPhone's popularity is evident in the company's quarterly earnings posted on July 21 . Apple reported selling 5.2 million iPhones, a 626 percent increase over the same period last year.

"Apple has the potential to become a de-facto standard of sorts in the consumer smartphone market, much like it became in the portable media player market with iPods, due in large part to its first mover advantage and tight software and hardware integration," said Sacconaghi, in the AllThingsD post.

The integration is something that Apple has lauded as an advantage it has over its competition for many. From the days of the Mac and applications like iPhoto and iMovie, to the iPod's integration with iTunes and the music store, Apple has always tried to give users a simple way to interact with its hardware and software.

About the author

Jim Dalrymple has followed Apple and the Mac industry for the last 15 years, first as part of MacCentral and then in various positions at Macworld. Jim also writes about the professional audio market, examining the best ways to record music using a Macintosh. He is a member of the CNET Blog Network and is not an employee of CNET. He currently runs The Loop.

 

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