Market Share and Share Price

Dare Obasanjo, on Twitter:

The point @gruber misses in [“Ceding the Crown”] is that Apple’s share price was based on the assumption of overwhelming market share.

That’s actually a point I wanted to make, but forgot. My misconception #1:

Apple’s lack of serious competition would, or at least might, result in an overwhelming market share advantage for the iPhone.

I think some significant amount of AAPL’s run-up was based on this notion, and when it became clear it wasn’t going to happen, all other signs of iOS’s growth and vibrancy be damned, those investors cashed out.

Tuesday, 19 March 2013