“Apple cares little about market share, much more about profits,” Karl Johnson writes for T-GAAP. “For companies like Microsoft and Intel, market share and profits go hand in hand. This is not true for Apple.”
“Apple competed with Microsoft not through market share, but through margins,” Johnson writes. “They proved this when Steve Jobs came back and ended the licensing program for the Mac OS. Steve showed you can make a lot of money without dominant market share. They are now doing the same thing with Android.”
Johnson writes, “While Android’s increasing market share looks bad for Apple, the opposite is true… Apple would have to reduce its profit per device in order to go after market share. Apple’s decision to go after margins instead of market is paying off as they rake in over 50% of the mobile market profits. This is even better news for Apple than market share is for Google.”
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