Apple Hits 50% of Handset Industry Profits -100M iPhones to be Sold in Next 12 Months

Apple is now enjoying almost half of the handset market profit, and determined to go even higher by selling 100 million iPhones over next 12 month period, financial experts sated.

According to Canaccord Genuity analyst T. Michael Walkley, though Android based smartphones continue to grow but Apple remains on the top when it comes to profit which is approximately 50% of the total industry’s net earning in the first quarter of 2011.

“Our [June] checks indicated continued strong sales of the iPhone 4, as it remained by far the top-selling smartphone at AT&T and Verizon despite the continued popularity of 4G smartphones and several new high-end Android smartphones,” he said.

Talking about Verizon Wireless, Walkley stated that iPhone 4 remained the best selling smartphone during June despite 6 new high-end Android phones (OEMs such as HTC (Thunderbolt – LTE, Incredible 2), Motorola Mobility (Droid X2), Samsung (Droid Charge – LTE), Sony Ericsson (Play), and LG (Revolution – LTE))launched in the last couple of months.

“Further, with Verizon not allowing subsidies to customers that are still under a two-year contract, we anticipate steady upgrades by Verizon customers to the iPhone will continue over the next several quarters,” he said. “As a result, we believe the iPhone will remain the top- selling smartphone at Verizon throughout 2011.”

Having said that, Walkley analyzed a slip in Apple’s smartphone sales share from 16.0% to 15.2% by the year end. He also estimated that Android based smartphones market share will increase to a whooping 50% from 22.6% which means increase in sales to 329 million units from 67.2 million units in the same period.

The analyst noted that his models assume Apple will not launch a lower-tier iPhone during 2012. Instead, he believes Apple will ship a modest mix of older iPhone versions such as the 3GS and iPhone 4 in order to create a more tiered portfolio. And even with those yesteryear designs, he still sees the company achieving its well-above-average gross margins despite the sub $400 average selling price the models will generate.


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