Apple Misunderstanding

by nikiscevak on November 2, 2010

For years, I used to retort Apple fanboys with the measly market share numbers the firm held in desktops and laptops. But businesses are about profits and not units shipped or even revenue earned and Apple’s strategy is designed to maximize profit.

In recent times Android has ‘raced’ past iPhone shipments but Google has to funge a meaningless number about its ‘mobile division’ being a billion dollar business ‘on an annualized basis’. That means they earned $83 million in a month. And that’s after they bought a low-margin mobile ad network for $750m, have the ‘leading’ mobile OS and a monopoly position in mobile search. Apple sold 14 million iphones just in the last quarter and have the powerful apps economy that powers it.

By some estimates Apple accounts for 40% of the total mobile handset industry profits with just 3% market share.

A similar meaningless conversation will ensue soon when Android tablets and other competitors enter. The iPad’s market share will likely decrease into the teens or some small percentage but that won’t matter one bit for Apple’s march towards the world’s most valuable company.

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