What's Smart About Smartphones? The Profits.

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Smartphones still represent a very small percentage of cell phones, but they are where the money is being made:

Apple's iPhone and RIM's Blackberry "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."

Even more interesting to me is the upside: It's clear that we are at the bottom of a steep growth curb. What will it mean to the market--not just for phones, but for mobile apps and web apps--when everyone who is carrying a phone is carrying a smartphone?

ARTICLE: Wall Street Journal: Apple, RIM Outsmart Phone Market

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