Monday, July 13, 2015

Apple earns 92% of all operating income from smartphones...

Apple earns 92% of all operating income from smartphones...  That's despite the fact that they make less than 20% of them (there are about 1,000 companies making smartphones).  Samsung, the next biggest smartphone maker, earned 15% of the total operating income from smartphones.  The reason Apple and Samsung combined earn more than 100% is because so many makers actually lose money, offsetting the profit from Apple and Samsung.  Click the first link to see the story.

If you're a high-tech business, it's totally normal to focus on market share (and market share trend).  Sub-20% share doesn't sound so dominant.  However, in any business, capturing 92% of the operating profit in the entire category is ... victory...

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