“Apple’s fall from Wall Street darling to Wall Street whipping boy has been largely documented,” Romano Bastianpillai writes for Seeking Alpha. “Pundits have decried that Apple lacks an innovative edge and that growth has plateaued. Do the public denouncements lack substance? The following points dispel common misconceptions of the technology behemoth.”
“Profit share is more important than market share,” Bastianpillai writes. “Many analysts have raised concerns that Apple’s market share is declining, citing competition from Samsung and Chinese brands including Lenovo. The primary objective of any public company is to maximize profitability and Apple has achieved this goal. Despite enduring a smartphone Market Share decline from 20.9% to 17.9%, Apple’s Profit Share increased from 77.8% to 87.4%.”
“Emphasizing percentage change can be misleading,” Bastianpillai writes. “The latest earnings cited quarterly revenue as $57.6B, translating to 5.7% year over year growth for the period… Analysts denounced the 5.7% revenue growth as flat, without fairly giving credence to the $3.2B increase. Here are a few facts to place the $3.2B into perspective: $3.2B equates to 19% of total Google revenue based on the most recent quarterly earnings. $3.2B equates to 41% of Facebook revenue for the entire 2013 Calendar Year.”
“The market needs to exercise more patience for new products,” Bastianpillai writes. “Some analysts have been complaining for years that Apple has lost its knack for innovation, due to the lack of recent new product categories. To be fair, Apple hasn’t deviated from its historical release schedule. The market should have realistic expectations and temper its patience.”
Much more in the full article – recommended – here.
[Thanks to MacDailyNews Reader “AAPLcore” for the heads up.]