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iPhonoconomics

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August 19, 2009 |

The people over at iSmashPhone have put together an image showing where the money flows around the iPhone eco-system. Some key datapoints:

  • Apple “accounted for 8% of handset industry” (I think this means revenues)
  • Apple accounted for “32% of industry profits ($2 billion).
  • Apple has only made $20-$45 million from the apps

While I would take many of the iSmashPhone numbers with a pinch of salt, the fact that Apple is making approximately 100x as much profit from sales of handsets as it makes revenue from Apps, you can see where the company’s priorities are going to lie.

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