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The profit margin is more important than market share. Profit = products sold * profit margin. If you have to decrease your profit margin, to increase market s
by p0ppe 15y ago
The profit margin is more important than market share.
Profit = products sold * profit margin. If you have to decrease your profit margin, to increase market share, the total profit might suffer.
- MatthewPhillips 15y agoWhy would they have to decrease profit margin?
- mgkimsal 15y agoI don't think the OP was saying that they'd definitely have to do so, but it's typically something companies do to increase market share generally speaking. Reduce price point means reducing profit margin, but often increasing market share because the lower price means more people can buy. Apple typically hasn't done this (or certainly not to the extent other mfgs do) but certainly still like talking about their increasing market share.
- AndrewDucker 15y agoBecause you can now buy an Android phone for less than £100. If Apple want to compete with that they'll have to compromise on both quality and profit margin.
- MatthewPhillips 15y agoRight now Apple is only competing in the high end mid-sized slate smartphone segment. You're pointing out just 1 other smartphone segment that they could compete in, the lower priced segment. There are many ways Apple could compete. They could release 2 or 3 new styles of iPhones while retaining the same price.
- AndrewDucker 15y agoApple pride themselves on making the iPhone simple, and not fragmented. I can't see how they can do that and still release the iPhones in different styles, unless we're talking nothing more than different covers. The massive market growth in smartphones is being caused by the smartphone becoming cheaper - if they want more of the market then they have to enter that area.
- MatthewPhillips 15y agoThey release different styles of Macs and iPods, why is the iPhone the one product of theirs that has no differentiation?
- AndrewDucker 15y agoVery good question. For some reason having differentiation in the smartphone space is known as "Fragmentation" and bad. Personally, I'd be very happy with Apple bringing out a wider mix of phones, but they seem dead against it. Edit: Just seen your comment at the bottom of the page - I totally agree - Apple's lack of different options is probably going to go badly for them in the long run.
- 2muchcoffeeman 15y agoTo make development easy and to make it easy create good user experiences across all iOS devices. None of their iOS devices have multiple versions in a single product cycle.