iPhone helps Apple pull more profit than Nokia

by Stevie Smith - Nov 11 2009, 11:55

Finnish handset giant Nokia Corp. may still be the world's biggest manufacturer of mobile phone devices, but Cupertino-based gadget specialist Apple Inc. has outshone its market rival in terms of pure quarterly profit.

More pointedly, a fresh industry report released by Strategy Analytics has revealed the hugely popular iPhone smartphone helped provide Apple with third-quarter profits of $1.6 billion USD, while Nokia was only able to amass a handset profit haul of $1.1 billion USD.

“Nokia's profit margin for its handset division has been shrinking during the global economic downturn in 2009,” commented report co-author Neil Mawston to Bloomberg. “We believe the United States, where Nokia now trails Apple in market share, is the key to Nokia's recovery in 2010.”

In terms of affected positioning within the smartphone sector, the third quarter saw Nokia posting a  dollar loss of $834 million as its dominant market share fell from 41 percent to 35 percent. The significant drop in traction promptly saw Nokia replacing chief financial officer (CFO) Rick Simonson with sales chief Timo Ihamuotila.

Yet, while Strategy Analytics' report shows Nokia busily shedding 20 percent of its revenue momentum during Q3, Apple was enjoying a 25 percent revenue boost thanks to high wholesale prices, good cost control, and the continuing international availability attributed to its iconic iPhone handset.

The iPhone is now sold in around 80 countries, and was most recently launched in China – the world's biggest mobile phone market.

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