“Android’s market share is a joke, and most tech writers aren’t getting the punchline,” John Koetsier reports for VentureBeat. “That, at least, is the opinion of John Kirk, a ‘recovering attorney,’ financial adviser, business coach, and investor who wrote an interesting column recently stating that market share in general, and Android’s market share in particular, is not an appropriate measure of success.”
“And that contrary to all popular opinion, Apple is ‘winning the smartphone wars — and winning them handily,'” Koetsier reports. “I wanted to understand Kirk’s position, so yesterday we chatted about Apple, Google, Android, and Wall Street.”
Some snippets:
VentureBeat: You stated that Android’s market share is a joke. Why?
John Kirk: It’s a reference to the old joke that you can lose money on every sale but make it up in volume. Many companies in the Android ecosystem are losing money or, at best, breaking even. HTC, Motorola, and many of the other phone manufacturers are in that boat.
VentureBeat: But isn’t profit a trailing indicator?
Kirk: Yes, it is. But market share isn’t necessarily a leading indicator. Profit comes from a combination of market share times margins, and people are completely ignoring margins.
VentureBeat: Leveraging a high profit share on a low market share is certainly efficient. But is it safe?
Kirk: You can look at the PC wars versus the Mac, which everyone says that Apple lost … but what Apple ‘lost’ by losing that war was winning 45 percent of the current market’s profits! So despite the fact that currently they’re at 8 percent market share, they’re doing very well… I don’t think that history is repeating … it seems much more likely that we’re ending up with a duopoly rather than a monopoly, and that Apple’s ecosystem is large enough to be self-sustaining right now.
Much more in the full article here.
MacDailyNews Take: And, HP and Dell “won.” (smirk)
Related articles:
Android’s market share is literally a joke; Apple is winning the smartphone wars and winning them handily – May 23, 2013
The Church of Market Share revisited – April 26, 2013
iOS dominates Android: 75 cents of every dollar spent on mobile advertising is spent on Apple iOS devices – April 19, 2013
Android owners aren’t real smartphone owners – March 12, 2013
iPhone users watch twice as much online video as those with Android phones – March 12, 2013
Where are the Android users? – March 11, 2013
With 78% share, Apple’s iOS tightening its grip on the enterprise and taking share from Android – March 8, 2013
Apple rules the skies with 84% in-flight share vs. Android’s 16% – March 7, 2013
Apple iPad continues domination with over 80% usage share in U.S. and Canada – March 7, 2013
comScore: Google’s Android, Samsung continue to lose U.S. share to Apple’s iOS, iPhone – March 6, 2013
Apple iOS dominates mobile video viewing with 60% share vs. Android’s 32% – February 13, 2013
Android’s Web share down 13% since November; Apple’s iOS now over 60% – February 1, 2013
Android’s unit share growth has not hurt Apple’s profit share – February 26, 2013
Apple iOS dominates mobile video viewing with 60% share vs. Android’s 32% – February 13, 2013
Android’s Web share down 13% since November; Apple’s iOS now over 60% – February 1, 2013
IDC: Apple dominates worldwide tablet market with 43.6% unit share – January 31, 2013
The Android engagement paradox – November 26, 2012
People buy more Android phone units and do less with them vs. Apple’s revolutionary iPhone – November 14, 2012
Study: iPhone users vastly outspent Android users on apps, respond much better to ads – August 20, 2012
