We already know that Apple’s phone business was more profitable than Nokia. Though Nokia had larger revenues, last when we checked in 2010, iPhone made more money for Apple than Nokia’s handset business did. And here comes the final blow, Apple has surpassed Nokia’s revenue with its iPhone sales.
The Apple iPhone 4 came in a CDMA avatar in January 2011 and went on to sell over 2 million units on Verizon, the largest operator in US. This perhaps accelerated the catchup with Nokia. The difference is also huge. Analysts gauge the iPhone turnover at 11.9 billion dollars whereas Nokia did $9.4 billion. While Nokia still does more volumes in terms of no of handsets shipped, its clear that its low and mid end phones are working, the high-end ones like E7 or N8 aren’t really breaking records.
Nokia has also had increased competition from Android OS. Many manufacturers have got Android phones selling for under $200 and that sure hurts Nokia’s strength. For long Nokia’s Symbian ruled the low end smartphone market, thats under threat.