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By on 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.

About Nicholas Lovell

Nicholas is the founder of Gamesbrief, a blog dedicated to the business of games. It aims to be informative, authoritative and above all helpful to developers grappling with business strategy. He is the author of a growing list of books about making money in the games industry and other digital media, including How to Publish a Game and Design Rules for Free-to-Play Games, and Penguin-published title The Curve: