“In August, after Q2 2012 market share numbers for smartphones were released, I wrote ‘Five Reasons Why Google Android versus Apple iOS Market Share Numbers Don’t Matter.’ I had three conclusions,” Darcy Travlos writes for Forbes. “First, for investors, market share may be less important than profitability since, after all, investors are buying a share of a company’s earnings. Second, market share ranking in any one quarter could be distorted by anticipation of upcoming product announcements primarily, as well as carrier promotions. Third, Apple remains an attractive investment given its earnings expectations to its stock price and outsized cash balance that could enable it to buy market share if it so decided.”

“The smartphone market has two other important dynamics aside from Apple versus Google that investors should keep in mind. The market continues to grow, and these two companies are taking market share from the old guard at a shocking pace. In August, Apple iOS plus Google Android made up 82.9% of the market while Nokia and Research in Motion combined lost 21.7% from the year prior,” Travlos writes. “The glaring market share loss of Nokia and Research in Motion, previously market share leaders, was the most striking result. They lost an additional 2.5% points in this most recent quarter. The strategies that Apple and Google are pursuing are winning.”

Much more in the full article here.