Apple and RAWR

  • May 24, 2011
  • Scott
  • 0 Comments

I don’t know if there’s a better representation of the health of a consumer business than this kind of chart found in the Asymco blog:

Where are all the profits in mobile?

In the chart above, it shows that Apple derives more profit per unit than any other vendor (by far), and that RIM (another integrated platform) still derives the second-most profit per unit.  It also shows the profit per vendor by looking at the area of each rectangle.  Again, Apple and RIM look to be #1 and #2.

Similar charts for the PC business would also be interesting.  And the Auto business.  Conventional wisdom says you have to have volume (scale) to be successful – and therefore a high-margin product in a low-margin industry won’t succeed (because it won’t achieve scale).  But there are examples that show it is possible.  And in some markets (cell phones), even a single digit market share is a very large user base (platform).

 

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