This from The Wall Street Journal: Apple and BlackBerry's Research In Motion accounted for only 3% of all cellphones sold in the world last year but for 35% of operating profits, according to Deutsche Bank analyst Brian Modoff. The disparity will become even starker this year when, he estimates, the two will take 5% of the market in unit terms but 58% of total operating profits.
Here are two firms that took very different paths to attain success with their smartphones. RIM was there early with devices that excelled at push email – a capability that filled an almost universal business need. Apple fashioned a mobile device with vast consumer appeal. Great examples of how superior product design aligned with a real market need (or potential demand) can leverage vastly different roadmaps to prosperity. Competitors trying to play catch-up now have some real hurdles to overcome – as Palm – and many others have learned. The one positive note for other handset manufacturers is that it doesn’t take much market share for exceptional profitability.
