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December 19, 2012

Comments

Market share is important. Now is the time when consumers are forming their brand loyalty. This is the "irreparable harm" that we hear spoken in Apple/Samsung court cases of late. Samsung was very wise to play dirty in the beginning and blatantly copy the iPhone anyway it could. it knew exactly what was at stake with market share. we can console ourselves all we want and say "but Apple has far greater profits". But in the long run market share will prove itself to be the deciding factor in who wins this war. One thing that is positive about the report is that it appears to include feature phones as part of the numbers. Feature phone owners should be counted among the "undecided" when it comes to brand loyalty.

Apples failure to bring in China Mobile is the most worrisome of all recent developments. if they can strike a deal sometime before the end of next year that would be a major victory. If Apple finally created a lower end phone, that too might be major.
Apple needs to make a market share play. Sooner is better than later. But apple has smarter people than me working on that. I'm sure.

Market share is important. Now is the time when consumers are forming their brand loyalty. This is the "irreparable harm" that we hear spoken in Apple/Samsung court cases of late. Samsung was very wise to play dirty in the beginning and blatantly copy the iPhone anyway it could. it knew exactly what was at stake with market share. we can console ourselves all we want and say "but Apple has far greater profits". But in the long run market share will prove itself to be the deciding factor in who wins this war. One thing that is positive about the report is that it appears to include feature phones as part of the numbers. Feature phone owners should be counted among the "undecided" when it comes to brand loyalty.

Apples failure to bring in China Mobile is the most worrisome of all recent developments. if they can strike a deal sometime before the end of next year that would be a major victory. If Apple finally created a lower end phone, that too might be major.
Apple needs to make a market share play. Sooner is better than later. But apple has smarter people than me working on that. I'm sure.

Unfortunately, Apple's profit structure doesn't matter at all. Wall Street is only interested in pure market share numbers. Only companies that strive for overall market share are favored on Wall Street. Samsung's share price has been doing very well from market share gains, but not Apple's, despite the greater profits. Somehow, investors just doesn't get the idea that any company (including Apple, in theory) can increase market share by selling more NEW models at lower price points. Yet, that will also cannibalize the company's higher-end products to some degree. When a company like Samsung does it, Wall Street praises the company about higher market share numbers. When Apple does it, Wall Street castigates Apple for cannibalizing their higher profit margin products. Apple never wins.

Apple as a company has never focused on having the most market share. Both Microsoft and Google from the very beginning aimed their mobile OS products to capture the most market share possible. I doubt companies such as Mercedes-Benz, BMW or Porsche ever tried to build vehicles to capture most market share and they're doing just fine. Apple is being punished for building higher-end products and not going after the most market share. Apple is being put down for using a different financial model suitable to the products it makes.

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