About Market Shares

Apple Insider on IDC Report

The problem for Android is that its high volume sales are not generating profits, because the majority of those volumes represent very low end phones. We can easily deduce this by subtracting Apple’s known revenue.

Apple’s iPhone ASP for the quarter was $635, down from the company’s year ago figures of $675. The company reported selling 33.8 million iPhones, resulting in about $21.5 billion in gross revenues.

This is just another good example showing that Market Share isn’t really a good instrument for actual market perfomance. We read in reports that Android phones now have more than 80% market share. Thats amazing. But behind the fact we learn that it contains all Android phones shipped (not sold to end users), of which only a third is real smart phones. 66% are dump ordinary not so smart phones based on Android.

mshare

What really matters is who is making the best result in their business. No doubt it is Apple, with just three models of iPhone, true smart phones and 75% of the profit in the whole phone (not so smart phones included) business. That’s why Apple isn’t interested in market share but customer satisfaction.

Here is another mindful article on the difficulties with the market share concept.

Read it >

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