John Kirk writes for TechPinions:
The Joke
Have you heard this one?
Two farmers bought a truckload of watermelons, paying five dollars apiece for them. Then they drove to the market and sold all their watermelons for four dollars each. After counting their money at the end of the day, they realized that they’d ended up with less money than they’d started with.
“See!” said the one farmer to the other. “I told you we shoulda got a bigger truck.”
Or how about this one?
Android is winning because they got a bigger truck.
“Both ‘jokes’ are based upon the old saw that one can lose money on every sale but make it up in volume,” Kirk writes. “Unfortunately, the joke is on us because this is exactly the kind of nonsensical analysis that is being doled out by tech pundits and lapped up by the press and investors.”
“What matters is not only market share and not only profit share but the ratio between them,” Kirk writes. “This is called Fair share profit analysis. Fair Share Profit Analysis contends that 1 point of market share should deliver 1 or more points of profit share… Apple may or may not do well in the future but right now, and contrary to popular belief, they are winning the smartphone wars and winning them handily.”
Ratio Of Profits To Market Share
3.12% Apple
1.30% Samsung
0.41% All Android
Tons more in the full article – very highly recommended – here.
MacDailyNews Take: Ask Michael Dell where this road leads.
[Thanks to MacDailyNews Reader “Tayster” for the heads up.]
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