According to the report released by Strategy Analytics Apple’s iPhone earned $1.6 billion whereas Nokia recorded $1.1 billion operating profit in the last financial quarter.

“With strong volumes, high wholesale prices and tight cost controls, the PC vendor has successfully broken into the mobile phone market in just two years,” said Strategy Analytics analyst Alex Spektor.

Nokia still maintain its place as the top mobile phone maker as on account Apple sold only 7.4 million iPhones around the world in the quarter, compared to Nokia’s 16.4 million.

Apple stands over Nokia as its iPhone carries a much higher profit margin on its handsets than competitors and Nokia’s margins were hit hard by both the economic downturn and a stagnant presence in the U.S.

Nokia could view launch of N900, its first Linux Maemo OS as the hope to regain its supremacy in the marketshare, though it would be little tough competing with iphone and now Google’s Android-based phones.