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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?


To: pyslent who wrote (162858)12/13/2013 10:01:44 AM
From: Moonray  Respond to of 213177
 
The ecosystem is one of Apple's greatest selling points.

Analyst: Apple’s iPhone Market Share Is Small, But Valuable

Are mobile industry watchers overemphasizing the importance of market share? In a recent note to investors
obtained by Apple Insider, Needham & Co. analyst Charlie Wolf argued that Apple’s ( NASDAQ:AAPL) iOS
mobile platform is in a better position than Google’s ( NASDAQ:GOOG) Android, despite the relatively small
size of Apple’s share of the overall mobile phone market.

“Observers, seduced by the simplicity of the metric, have elevated market share as the sole driver of financial
performance to a position that far exceeds reality,” wrote Wolf in a research note obtained by Apple Insider.
“Indeed, there appears to be no correlation between market share and the viability of a platform. In
surveying the variables that determine the viability of a platform, we would argue that the breadth
and depth of the platform’s application library and ecosystem play a far more important role than
does market share.”

One example of the “breadth and depth” of Apple’s ecosystem is its App Store that has generated rapid

and consistent revenue growth ever since it debuted in 2008. During Apple’s recent fiscal fourth-quarter
earnings call, CFO Peter Oppenheimer noted that, “Cumulative app downloads have reached 60 billion
and our app developers have now earned 13 billion from sales to the App Store, half of which they’ve
earned in the last year.” Apple also consistently beats Android in terms of mobile online shopping and
other valuable mobile platform activities. This was especially evident during this year’s Black Friday
holiday shopping rush.

More at: wallstcheatsheet.com

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