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It's interesting to me that Apple value profit over market share, unlike many of their rivals.
by alphadevx 11y ago
It's interesting to me that Apple value profit over market share, unlike many of their rivals.
- simonh 11y agoI'm not entirely certain whether their rivals actually value market share over profits as such. It's hard to run a company for long if it's not making money, regardless of what it's market share is. Market share matters for a lot of companies because economies of scale mean that your unit costs go down as volumes go up. This gives a natural advantage to market leaders, in addition to things like increased brand visibility. Market share is very important to pundits though, because it changes very rapidly and is often measurable throughout the year on a per-product basis, whereas company financials are less frequently reported and harder to tease out. A battle between products that readers can see in the shops and read reviews for is easier to create a narrative around than corporate financial performance. I think this is why sales numbers and market share are focused on so heavily in the media.
- melling 11y agoYeah, that's probably why engineers work for MBA's or sales guys. Most engineers have no concept of marketing, aspirational branding, or human psychology. Unfortunately, the one concept we have down is "make it up in volume."