Apple and Research In Motion make huge profits thanks to flogging gear with high profit margins according to Deutsche Bank analyst Brian Modoff.

Modoff said the companies only account for 3 per cent of the entire global wireless market, but earn 35 per cent of operating profits. He expects the companies to continue to gobble up market share and increase their profits over the next few years despite a dip in the overall mobile phone market.

Modoff said Nokia had about 46 per cent of the global mobile market share but earned 55 per cent of operating profits. The company is reliant on low-cost mobile phones for emerging markets that don't have high margins.

Apple has been clever at getting carriers to stump up $400 to subsidise each phone. Rim has been exploiting its deep roots in the enterprise market with backend infrastructure like the BlackBerry Enterprise Server.

Both really make huge amounts of cash for each unit they sell and it is the telcos and ultimately the consumer, that has been giving them it.