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Showing posts with label industry profits. Show all posts
Showing posts with label industry profits. Show all posts

Wednesday, September 22, 2010

Is Apple simply a cash machine ?

I came across a Fortune article, which seems to be against everything we have learned at school so far. In today's strategy implementation class it was repeated again: when you increase your market share you also increase your profits, partly due to economies of scale and partly to other joint effects. So how come Apple gains this "outrageous share of the mobile industry's profit", while only selling a tiny number of phones compared to the other manufacturers?
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.