Apple certainly hit a home run with the iPhone. Even those of us who don’t worship at the altar of Jobs have found the iPhone to be a fantastic device worthy of most of the praise it’s given. The sales of the smartphone show that it has hit a chord with consumers.
An analyst from Bernstein research named Toni Sacconaghi has said that Apple has managed to gobble 32% of all the profits to be had in the smartphone market. The astounding part of that is that Apple only holds 8% of the smartphone market.
That should give an idea of how lucrative the subsidies are that Apple is receiving from its exclusive partners. Maybe Apple needs those partners as much as they need its exclusive deal. Apple reported that it sold 5.2 million iPhones in its last quarterly earnings.
