Tag: Apple

While Rivals Jockey For Market Share, Apple Bathes In Profits

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%.

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To people who follow Apple closely, this should be absolutely no surprise. It’s the same thing it does in the computer industry. Despite having a much smaller market share than its rivals, it makes more money than most of them. The key, of course, is that Apple maintains its high profit margins, while the competitors shuffle to battle each other for market share.

That’s not to say that Apple doesn’t care about market share for either its computers or the iPhone, it undoubtedly does. But it’s a secondary goal to running a successful business. A business which is now absolutely thriving in an awful worldwide economic environment. ~ While Rivals Jockey For Market Share, Apple Bathes In Profits

Why Windows 7 isn’t competing with Mac OS X Snow Leopard — RoughlyDrafted Magazine

http://www.roughlydrafted.com/2009/08/26/why-windows-7-isnt-competing-with-ma...

Microsoft is not anything like Apple. Microsoft almost exclusively licenses its Windows software to PC makers, which are then pitted against each other to sell commodity hardware to consumers. Apple sells a unique, integrated product directly to consumers.

In many other market segments however, Macs (and Linux) have both found conformable niches where they are more fit for survival than Windows. Apple has specifically targeted home and education markets, mobile business users, music and video production, and sci/tech markets, all of which represent low hanging fruit that is also highly profitable.

Apple’s specialization and unique differentiation from generic Windows PCs, including the Mac’s advantages of being a highly integrated product with centralized support resources, distinctive hardware design and attractive OS software, all combine to make it better suited for certain markets than the run of the mill PC. No features in Windows 7 can compete against those core strengths of Apple’s integrated platform.

The only way Microsoft can take on the Mac is by creating its own PC hardware.