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Nokia has done a great job of building marketshare on the back of extremely-low-margin phones like the 52x series, but I would hesitate to declare it a victory
by huxley 13y ago
Nokia has done a great job of building marketshare on the back of extremely-low-margin phones like the 52x series, but I would hesitate to declare it a victory for Microsoft/Nokia just yet, it might just be a dead-cat bounce.
- TylerE 13y agoNot to mention that "market" share will be much lower on those low-end phones, as surely the kind of people buying them are not splashing out tons of cash on the appstore. That's what Apple has always gotten right - looked at things in terms of margin and value of the customer, rather than just shipping the most widgets.
- untog 13y agoThat's what Apple has always gotten right Not necessarily 'right'. Selling low-margin devices at high numbers isn't 'wrong'. They're just two different business strategies.
- TylerE 13y agoLook at net profits of Apple vs everyone else. There is a right and a wrong. While it's hard to tease out just phone profits, Samsung has a profit margin of ~12% whereas Apple's is closer to 30%. Huawei is under 8%.
- pmelendez 13y ago>"Not to mention that "market" share will be much lower on those low-end phones" You are thinking just in USA, the consumer behaviour is way different in markets like China, India and Latinamerica.