Profitshare and Marketshare
There’s a real interesting battle for mobile phone supremacy or “smartphone” supremacy right now. As the NYT notes,
In the six months ending August 10, Android phones accounted for 32 percent of the smartphones sold, Nielsen said. By comparison, iPhones accounted for 25 percent of devices sold and BlackBerry handsets for 26 percent. A month earlier, the three types of devices were in a virtual dead heat.(I believe these numbers are US-only). Clearly, from a marketshare point of view, Apple needs to get out of its exclusivity with AT&T to improve its US numbers. However, it is worth noting that Google’s share of smartphones is… pretty much zero. They don’t sell phones. But some other folks DO sell phones that run Android:
- Apple’s iPhones are still considered the creme de la creme and therefore fetch a higher price from service providers like AT&T.
- Apple is selling every phone they can make – in a sense right now they are build-to-order – which means, no inventory going stale on store shelves. That usually enhances profit considerably, though it also often means they lose out on some marketshare.
- The A4 chip (iPhone4, iPad, and AppleTV)
- Flash Memory (NAND) – they are the biggest buyer by far, buying 20-25% of the world’s supply! This gives them a huge pricing and availability advantage in the market.
- Touch screen R&D
- Touch screen components – Apple is already the largest purchaser of capacitive touchscreen glass screens.
- Leveraging iOS across multiple devices… and iOS itself leverages much of OSX.