Apple’s Pursuit of Profit Rather Than Market Share

And speaking of MG Siegler, he has a good piece about Apple’s pursuit of profit rather than raw market share. This might be the single key factor to understand about Apple as a business. The difference between Apple and its competitors can be striking. Siegler writes:

According to the report, Apple made $1.6 billion in operating profit off of the iPhone in Q3. Nokia, meanwhile, made $1.1 billion. Let’s put this in perspective. Recent numbers suggest Nokia controls roughly 35% of the worldwide handset market. Apple? About 2.5%.

Not 25%. Two point five percent.

Another way to put it is that Apple is concerned with unit share, but only in the most profitable segments of the market.

Wednesday, 11 November 2009