Apple gained 39% of the industry's profit share with 17m units sold, while the others sold about 400m devices to gain 32% of the profit share. While those figures are already impressive, have a look at the charts which a part of the article.
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I (Venkat) have embedded the picture below and it connects to what we discussed in class about the share of industry profits of Microsoft and Apple.
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I (Venkat) have embedded the picture below and it connects to what we discussed in class about the share of industry profits of Microsoft and Apple.
It simply makes us rethink some of the received wisdom as we transition to the post industrial world. We need scale up to a point but scale does not guarantee profits. Value creation and capture is more complex and dynamic than in the standalone product world.
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Great post, Thomas! One other explanation I can think of regarding Apple's increased market share are around loyalty and consumer lock-in. Because we become so 'addicted' to our iPhones, we have no incentive to become a consumer with multiple devices (one for email and another for talking). I think Apple has done an excellent job integrating all of the technologies a consumer needs into the iPhone, which in turn has created a high consumer loyalty rating as well as lock-in.
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