There are a couple of classic reasons why market share is deemed to be a good thing. Gross revenue is one advantage. But profit margins are the other advantage leading market share is supposed to confer. Apple seems to be a case in point.
Telcos struggle to make 20-percent margins. Perhaps software or "Internet" companies could reasonably expect, with market leadership, to have 40-percent profit margins. It is harder, in consumer electronics, in some product lines, to make single-digit margins. Apple is nearing 40-percent margins. Almost unheard of for a consumer electronics manufacturer.
Wednesday, April 25, 2012
Apple Earnings: Market Share Matters
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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