“How the available money for profit is calculated explains the anomaly of going over the 100 percent mark,” Spence writes. “Because the losses made by companies on their smartphone projects are included in the ‘profits available’ calculation, there’s more money in the system than the money handed over by buyers around the world. Once you include Samsung’s increased losses due to the Note 7 debacle, Apple’s profit goes over the 100 percent mark.”
“What’s more important to note is that Apple managed to bring in this level of profit on just twelve percent of the [unit] sales in the smartphone sector [or market share],” Spence writes. “That money can be used to fund more research, more development, and more design. Not only does that benefit Apple, but the competition has less money to fund those same resources, increasing the potential lead between the iOS and Android platforms.”
Read more in the full article here.
MacDailyNews Take: Market share, schmarket share.
Total dominance: Apple iPhone takes 104% of smartphone industry profits – November 4, 2016