Market Share vs. Profit Share

Some interesting math from Daniel Eran Dilger comparing Apple to HP and Dell:

In other words, Apple earned nearly half as much net income with its 5% share of the market as HP and Dell together, with their combined 55% share of the US PC market: $1 billion for Apple vs $2.2 billion for HP and Dell together!

These numbers aren’t precise, because all three companies make money from businesses other than selling computers. But it reinforces my point about Apple’s share of the PC market: what matters most is Apple’s share of the market’s profits, not unit sales.

Tuesday, 6 March 2007