04-22-2011, 06:16 PM
Grieve Wrote:Nice chart - Apple has 4% of the world cellphone market, and 50% of the profits. 4% tells me a long way to grow...
You actually have this backwards. It is actually the other way around. It is the other companies that have a long way to go not Apple. They won't gain much more then they are now because they already run very thin. Their market share is never going to be huge from a sales perspective unless they change internally.
I have been hesitant to discuss them in the past but the one thing I will say about Apple is they run as cheaply as possible. Their is no more fat to be trimmed so unless they gain market share they aren't going anywhere.
The other companies however run extremely fat. If their competitors ever smarten up and thin down companies like Apple will start to lose that market share in profitability. In other words Apples success is greatly attributed to the other companies failures. Not the other way around.
Don't get me wrong, Apple consciencely made these decisions which is very smart but their are only so many gains to be made on that end.
Vllad