Profits for the traditional top-five handset vendors are dropping with their share of industry profits falling from 92% in 2004 to 84% in 2007, according to Strategy Analytics.
"The top-five vendors may seem to be more dominant than three years ago but their income actually shrank," states Tom Kang, senior analyst in the Strategy Analytics Wireless Device Strategies service. "An internal focus of cost cutting and growing scale has drained off resources that should have been channeled into competitive assets for use in the new market landscape. It is no surprise that these same vendors are now struggling to find a viable strategy in this new market paradigm. RIM (Research In Motion) on the other hand has only 1% of the volume market, but was able to earn 6% of the industry profits, which raises them up to the number four spot."
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*Source: DigiTimes (
http://www.digitimes.com/news/a20080502PR207.html)*
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