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


To: Ryan Bartholomew who wrote (170250)6/3/2014 4:55:44 AM
From: HerbVic1 Recommendation

Recommended By
MGV

  Read Replies (1) | Respond to of 213176
 
No, I get it, and I even agree that they have been and probably always will keep building upon that loyal base. I disagree, however, that share doesn't become instrumental at some point. The Mac is thriving after many years with a relatively small market share... but it's also responsible for a tiny portion of Apple's profits. Apple could lock in the same scenario with the iPhone and iPad. …
What does the percentage of Apple's profits coming from Macs have to do with the Mac's success after an extended period of small market share? This statement proves that you really don't get it. You may think you do, but your line of reasoning is deeply entrenched in the belief that share trumps profits. It doesn't. To you, the Mac is trumped by the iPhone, and that tarnishes its success. It doesn't.

You just had to say something inflammatory about it, because that's what you do. Well, you baited me and here's my response.



The Mac survived with < 3% market share when it was pretty close to being the only thing carrying the company. Now it is only 14% of the company's revenue, yet with a much higher market share. That tells a story that contradicts the theory that share does become instrumental at some point.

If you want a bird's eye view of the future of Android, you have to look no further than what is happening in the Windows PC camp.

Here, Charles Arthur wrote a piece that metaphorically provides a high tree branch from which it is easy to have a look. Get the picture?

How the 'value trap' squeezes Windows PC makers' revenues and profits
Charles Arthur
theguardian beta
January 9, 2014

Analysis of the revenues and profits for the 'big five' PC manufacturers - HP, Lenovo, Dell, Asus and Acer - which make more than 60% of the Windows PC - shows a multi-year squeeze on prices and profits. What next?