The Wall Steet Journal (paywall) notes that Apple and RIM are making disporportionately high profits on their smartphones while the rest of the industry is in a race to the bottom (sound like NetBook vs. Laptop market?).  Interestingly, Nokia is having significant issues with Smartphone marketshare but is still ahead on the profit curve.

Apple and RIM accounted for only 3% of all cellphones sold in the world last year but 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.

The iPhone, which is exclusive to AT&T and whose users are the heaviest Web surfers, draws the fattest subsidy, at about $400 a phone, Mr. Modoff calculates. BlackBerries draw subsidies averaging $200 from U.S. operators. Basic cellphones get a $100 subsidy.

FTC: We use income earning auto affiliate links. More.

Check out 9to5Mac on YouTube for more Apple news:

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

About the Author