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Market share is the wrong thing to look at, yes Apple has a small desktop/laptop market share, but they utterly dominate the profit share. This is the real que
by simonh 4y ago
Market share is the wrong thing to look at, yes Apple has a small desktop/laptop market share, but they utterly dominate the profit share.
This is the real question: How is Apple going to fill the gaps you see in the low end PC market, where there are very small profits to be found, without cannibalising it's own high end profit margins?
For the wintel PC makers market share is all that matters because they are all trapped in the commodity sector, so volume is the only way to grow profits. Apple isn't, it's a premium brand, so the economics it lives by are completely different. Analysts have been getting this wrong about Apple for decades, in fact pretty much my entire adult life, and I'm in my 50s.
Commodity companies can afford to stagnate their products, Cocacola makes the same sugar water they did before I was born. Premium product companies cannot afford to do that, they have to constantly invest in renewing and updating their products. Apple has been doing that for almost their entire existence (modulo a period of stagnation in the 90s when the execs didn't understand their own business).
On the software side I don't really agree, yes they have quality issues, but so does all software and they have incredibly complex stacks these days. They're constantly pushing forward with new software features, that's part of the problem, new features means new bugs.
- mschuster91 4y ago> They're constantly pushing forward with new software features, that's part of the problem, new features means new bugs. Only if you don't invest in testing - and Apple sadly has fallen to the trap of "bananaware" (ripens at the customer) as well as everyone else. "We ship it once it is good quality" has been replaced by "we ship it as soon as it can survive the presentation at WWDC and fix the bugs later on". For commodity manufacturers this can be excused by low profit margins (even though I don't like it), but Apple could literally double their developer headcount and they wouldn't feel it in their bottom line.