Interesting stuff. I think nokia has defintely been badly hit in the high end market, and they have lacked a credible alternative. I'm really interested to know though where apple will go next. There will surely be a new iphone out next year, what will they offer to get people to "upgrade" and keep upgrading, as the competition from Android and others increases? They are on a high right now, as they've had a period where essentially no one could compete with the iphone at the top end. I think increased competition will hit them over the next year or two, unless they pull another rabbit out of the hat with the next model. Their strongest feature right now is the app store -- that is the one area where no one is competing strongly yet, but you'd expect android to make inroads there. It is frankly phenomenal (almost unbelievable) how much money Apple is making from the iphone. Can their margins be so high on it? Or is that figure including other revenues (exclusivity tie in deals from operators, the alleged chunk of contract money they pocket etc.). I wonder how much the app store makes them! (Edit: Thanks drm, makes a lot more sense if that is total profits! Lazy comparison by the journo then)