The mobile industry has been looking for an answer to Apple's iPhone, but it continues to suck all the air out of the room. Apple's emphasis on brand name and refusal to compete on price has resulted within the biggest chunk of mobile market earnings despite having the smallest a share of the market. The iPhone's popularity makes it impervious to bad press. The recent "Antennagate" wireless reception crisis didn't dent sales in the least. Even with Android on the rise, cellular market experts say Apple's iPhone is so lucrative it is unlikely the business feels threatened. Article source - Apple dominates mobile industry with a fraction of market share by Newystype.com.

Apple has got the gold affect

The iPhone has always attracted a great deal of media attention. But the true nature of Apple's money-making machine was detailed by Fortune on CNN.com. Apple stock was given a "buy" rating and a $ 356 per share price target by Canaccord Genuity, a fund market analysis firm. The analysts used data about Apple's performance to back up its advice to buy the company's stock. Apple sent 17 million iPhones out the door within the first half of 2010—3 percent of mobile sector sales. The three biggest cell phone makers within the world, Samsung, Nokia and LG, dominated with a combined 400 million units sold. Apple racked up the numbers where they counted. The company amassed 39 percent of market profits in that time frame. The top three heavyweights fought over 32 percent of mobile industry profits. The significance of Apple's performance was put in context by Canaccord Genuity. As a rule, cell phone manufacturers are lucky for making 10 percent operating margins, or any profit at all. With its iPhone, it is believed that Apple enjoys a 50 percent gross profit on top of a 30 percent operating margin.

Beneath the surface of Apple's success

Until the iPhone was created, making nearly 40 percent of market profits with a mere 3 percent market share was unthinkable. Distinctive advertising aside, there are significant reasons why Apple has managed to run circles around the cellular sector, said Jason Mick at Daily Tech. Mick said the iPhone's popularity enables Apple to demand a very lucrative contract from AT and T, who's depending on the iPhone to gain subscribers despite its poor customer satisfaction record. Apple also uses cheaper hardware than top-of-the-line Android competitors. Plus, Apple is extremely aggressive in negotiating with manufacturers for higher volume and lower prices. Apple's battle plan has resulted in piles of cash to spend on invention in the iPhone/Android war. Beating Android, Mick said, probably is not at the top of Apple's list. All Apple has to do is keep its loyal customers happy.

The unstoppable iPhone

Apple has been able to maintain a high level of consumer satisfaction despite Antennagate. When the iPhone 4G was unveiled, a concerted media effort to inflate a reception issue with the new model did not make it much further than the blogosphere. Consumer Reports started the Antennagate furor in July when it said it would not recommend the iPhone. Consumer Reports is sticking to its guns. But the iPhone marches on. According to Computerworld, the J.D. Power and Associates customer satisfaction rankings for smartphones lists the iPhone at the top of the list—its fourth consecutive first place finish.

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