There’s an interesting yet contentious post at TechCrunch on Brian Modoff’s (Deutsche Bank analyst) report on handset operating profit share. While many of the post comments question the numbers, I think the overall message is probably valid. Apple and RIM are taking an increasing large share of handset profits.
The bigger question is whether this is sustainable. Can Apple grow the iPhone market further without encroaching into lower cost and lower margin devices? How will the ramping up of smartphone production affect RIM? What will be the affect of new Android, Palm and Symbian based devices? These are uncertain times. It’s time for developers such as myself to hedge our bets.