Apple and Google: Why current market share results don’t matter yet

“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.


    1. My dream is that Android devices evolve to become like the Series 6 model from Battlestar Galactica (you have to search for images)..

      Oh yeah, and Google gets bought by Yahoo, Samsung gets bought by Kia and just makes cars and ships, and Amazon is bought by Walmart (but Bezos is out).

      1. You might never know, Amazon would be bought by Walmart. The brick-and-mortar stores are fighting back and might eventually beat Amazon at its own game. When Mr Bozos has no more ideas left, it’s game over for Amazon. The stock price might get a beating and dive to $10 per share because Amazon owes Wall Street a ton of dole and it doesn’t earn enough to repay the debt. Wall Street is a hard taskmaster and if you miss a step and do not dance to its tune, you will be stripped of all meat on your body.

        Apple on the other hand has never played to Wall Street’s tune and this has put fear into Wall Street. If more companies were as independent as Apple from Wall Street’s charm and manipulation, Wall Street might lose its power to influence and prey. That’s why Wall Street is trying its leveled best to belittle Apple at every opportune moment.

  1. Keep telling yourself that. Mark your Calendar (iCal for Snow Leopard).

    Unless Cook & Company get their head out of their azz we are looking at the John Sculley II era of Apple, where a huge lead on the competition was pissed away by bozos floundering without direction and a unified purpose.

    The party lasted a long time and only the return of His Steveness turned the thing around. Had he chosen to walk away after the merger to enjoy his wealth and other business (Pixar), Apple would be talked about like Commodore and Atari among computer geeks and you would be listening to music on you Brown Zune- tape drive edition.

    1. Dude you have to be young, clueless or both.
      Apple gave up their “lead” because their product sucked, plain and simple.

      Apple’s products (currently) are essentially the best available at any price.
      So ends your visionless comparison.

      1. It is interesting how a ‘Johnny come lately” steps up and says something about Apple’s products that he never used or compared to the Windows products. When you cast aspersions on the previous writer and Apple products, you essentially are saying the same or worse about your own worth and capability.

  2. As soon as Apple started issuing stock dividends, it stopped being a company that attracted investors looking for stock valuation growth. By becoming a value stock, it is indeed angling for better market share.


    The release of a 7″ tablet proves that Apple now cares as much, if not more, about market share than innovation or profitability. iOS is in the nice position to be defending a large market share, which is satisfying but ultimately a dangerous place to stand.

    The continued foot-dragging on producing high-margin professional workstations and enterprise-level computing products also shows that Apple isn’t concentrating on profit, but rather market share. Here Apple seems to be making a bet (a bad bet, in my opinion) that everyone on the planet prefers tiny lightweight computers to powerhouses. Cray and IBM, etc prove otherwise — a missed profit opportunity for Apple. In the Mac business unit, Apple instead is obsessing about market share it holds in laptops.

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