In the fast changing world of Mobile Technology companies must constantly adapt and evolve with not only prolific innovations but also from an increasingly sophisticated and demanding consumer base. Apparently Apple and Android understand this concept as their market share continues to increase while RIM, the pioneer of the smartphone industry with its trademark Blackberry continues to sink further into the abyss.
Apple further solidified its top spot in the mobile industry’s most profitable smartphone company recording record breaking earnings and profits for the quarter ending December 31 2011. The net income of $13.1 billion with revenue of over $46 billion easily blew past even the most rosy of outlooks and expectations doubling profits and reporting more sales of its popular consumer computing products than ever which also gives shareholders a little comfort in the direction of the company after the untimely death of founder Steve Jobs.
The majority of the record breaking profits came from sales revenue on the perpetually innovative iPhone with over 37 million iPhones sold in the quarter as well as record sales of over 15 million iPads in spite of companies like Amazon releasing lower priced . As an illustration to put this in perspective relative to RIM, the ENTIRE Blackberry consumer base which took them ten years to build is around 75 million! In addition, Apple’s increase in profit of $20 billion from the same quarter last year is more than the estimate that RIM released for their entire fiscal year sending a warning shot over the bow to investors in RIM as to just how far behind the company truly is in the ultra competitive smart phone marketplace.
None of this news his helping the stock price for Research In Motion which had already suffered substantial losses earlier in the week when Mike Lazaridis and Jim Balsillie stepped down from their positions of co-CEOs shaking investor confidence in the company’s plans for the future to compete in the smartphone market.
The astonishing profit report also went down as one of the lost profitable quarterly profit reports in United States corporate history with excited investors helping to send the price of Apple stock up around eight percent and putting the Cupertino based corporation on par with petroleum industry giant Exxon-Mobile as it now holds nearly $100 billion in cash and securities.
Gregg Hall, CMO of Florida based Action App, a developer of smartphone applications for iOS and Android, said, “The results from Apple don’t surprise me at all. The company focuses on making their products very user friendly and in my opinion it is the combination of ease of use along with a rapidly expanding mobile app market that continues to keep the company at the crest of the mobile technology wave.”
Some stock analysts are not so bullish on Apple, such as Roger Kay of Endpoint Technologies, “It may happen for several more quarters, but mathematically it has to end. There is a point where Apple is weighed down by the law of large numbers. They can’t become all of China.”
When looking at the chart below from Mobi-Thinking it is also apparent that according to industry experts, sleeping giant Microsoft is about to release its own Trojan Horse with Windows Mobile projected to overtake both RIM and iOS by 2015. Savvy app developers need to take this data into consideration in this fast moving technology sector to receive maximum ROI and capitalize on new and emerging markets.
|Worldwide smartphone operating system (OS) market share in 2009-2015, according to Gartner||Smartphone OS market share and compound annual growth rate 2011-2015, according to IDC|
|Total smartphones sold||172 million||297 million||468 million||631 million||450 million||N/A||19.6%|
|Source: Gartner (April 2011)||Source: IDC (March 2011)||via:mobiThinking|
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