Just two mobile devices account for the overwhelming share of global handset profits, says Deutsche Bank analyst Brian Modoff. Between them, the two devices account for 35 percent of global mobile operating profits despite representing just three percent of global market share.
In 2009, the two devices will move up to five percent market share but claim 58 percent of
total operating profits.
Smart phones hold only about 13 percent of total cellphone sales globally, but are growing, despite a drop in the broader cellphone market in the first quarter.
The iPhone, which is exclusive to AT&T, draws the fattest subsidy at about $400 a phone, Modoff said. BlackBerries draw subsidies averaging $200 from U.S. operators. Basic cell phones get a $100 subsidy. Manufacturers of basic phones make next to nothing, unless they have enormous scale.
Nokia, the industry leader, manufactured 46 percent of the units sold last year but earned 55 percent of the profits, Modoff estimates.
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