Despite only accounting for 8% of the handset industry’s revenue, Apple’s iPhone accounted for 32% of the industry’s profits during the first half of 2009, according to Bernstein Research analyst Toni Sacconaghi who explained the reasons behind Apple’s success:
With the iPhone and its Apps Store, Apple has established a formidable smartphone ecosystem, which history suggests is very difficult to overcome. In fact, Apple has the potential to become a de-facto standard of sorts in the consumer smartphone market, much like it became in the portable media player market with iPods, due in large part to its first mover advantage and tight software and hardware integration.
We should point out that Sacconaghi’s report doesn’t take into account the new iPhone 3GS which flew off the shelves earlier this Summer and was responsible for the best sales day in AT&T history.
Yesterday we noted that Sacconaghi also bumped his target for Apple’s stock price up to $185 from a previous target of $165.