“Market share is probably the easiest and most often used point of comparison between competing products. It makes sense: If something has a large share of the market, it’s probably doing well. But that doesn’t always mean that it’s doing better than something with less market share, especially from a business perspective,” MG Siegler writes for TechCrunch.
“I bring this up because today brought some very interesting numbers from the research firm, Strategy Analytics. According to them, Apple has surpassed Nokia as the most profitable phone maker in the world. I’ll throw some numbers at you in a second to show why this is really incredible, but the key takeaway is that this is why, at the end of the day, Apple wins,” Siegler writes.
“While the press and rivals obsess over market share, Apple quietly comes in and makes an insane amount of money. It’s the same in the computer industry. Small market share, huge amount of money. The most important thing for all of these are companies is the bottom line,” Siegler writes. “Apple wins that battle.”
Siegler writes, “According to the report, Apple made $1.6 billion in operating profit off of the iPhone in Q3. Nokia, meanwhile, made $1.1 billion. Let’s put this in perspective. Recent numbers suggest Nokia controls roughly 35% of the worldwide handset market. Apple? About 2.5%.”
Full article here.
MacDailyNews Note: Apple’s share of the smartphone market, the only market in which they compete, is far higher than 2.5%, of course. iPhone’s share of the worldwide smartphone market was pegged at 18% for Q309 by Canalys. Please see related articles below for more info.