Nokia, Apple and the Courts

One new factor that could possibly impact the money Apple makes from iPhone sales is a lawsuit Nokia launched last week.

Nokia filed a complaint against Cupertino in the Federal District Court in Delaware alleging that the iPhone infringes 10 of its patents for various wireless standards. Nokia says the patents cover wireless data, speech coding, security and encryption, and it claims they are infringed by all iPhone models shipped since the device was introduced in 2007.

The lawsuit is an attempt by Nokia to slow down the iPhone's runaway market growth, contended Julien Blin, CEO and principal analyst at JBB Research. "Nokia's share of the smartphone market just took a big hit, falling from 41 percent to 35 percent," he told MacNewsWorld. "The timing might not be a coincidence at all, especially after Apple reported a great quarter."

As further proof of his suspicions, Blin pointed out reports that suggest Apple has been working with Nokia for at least 12 months to hammer out a patent agreement. "Nokia is better off dealing with its own issues rather than trying to slow down Apple, because it's unlikely to succeed," Blin added.

"The lawsuit will take years," agreed Broadpoint AmTech's Marshall. "Nokia is probably using some of Apple's patents as well, so expect a counter-suit soon."

Most importantly, the lawsuit won't impact the market. "It won't scare away investors," Marshall said. "I view it as a minor inconvenience."

Android Phones Not a Direct Threat?

Handset manufacturers and carriers are unleashing a slew of Android phones into the market. About 50 Android phones will hit the market soon, according to the site Wiseandroid.

However, Android will mostly take market share away from Nokia's Symbian OS rather than the iPhone, according to a report from In-Stat.

"Phone makers want cheap and popular devices, so Android is a fit," Allen Nogee, a principal analyst at In-Stat, told MacNewsWorld. "They know that RIM, Microsoft and Apple will take market share if they don't unify behind one strong OS. Android works for those companies that aren't backing another OS, and there can be power in numbers."

Sales of the iPhone will remain strong, Nogee predicts. "Apple sold about 8 million iPhones in 2008 and will sell close to 32 million this year," he said. "This will more than double again in 2014 but, by then, Apple might have two or three models."