Apple Take Half; Nokia Relegated

Forbes.com, Fall, 2011. This article was placed on behalf of the U.S. based equity research effort of institutional broker and investment bank Canaccord Genuity. It was part of a series of articles developed under an agreement with forbes.com to work with a variety of contributors and assist them in delivering actionable investment ideas each week. The site, forbes.com is one of the top 500 sites in the world with nearly 10 million subscribers and approximately 100 million page views a month.

Apple earns more than half of all industry profits among mobile handset OEMs according to a monthly analysis of the market by Canaccord Genuity technology analyst Michael Walkley. “Apple generated a remarkable 52% of handset industry operating profits among the top 8 OEMs.” This represents a 5% increase over the third quarter of 2010, when Apple’s share of industry operating profits was 47%.

In an epic reversal of fortunes, Mr. Walkley pointed out that in 2007, Nokia had 67% of operating profits while Apple had just 4%. Today, while Apple has 52% of industry profits, Nokia has been relegated its rival’s former position with just 4% of operating profits.

Mr. Walkley reiterated his buy rating and raised is price target on AAPL shares from $545 to $560. He also raised his 2012 revenue from $138.4B to $139.7B and earnings per share estimates from $33.10 to $33.52.