3 ms·
Yeah, it's an odd stat. For instance, if someone new enters the phone market, and spends a ton of money and loses a LOT of money, the total profits for the ind
by smackfu 11y ago
Yeah, it's an odd stat. For instance, if someone new enters the phone market, and spends a ton of money and loses a LOT of money, the total profits for the industry go down, and if Apple makes the same dollar profit as the year before, their profit share number goes up. If the next year, that new competitor goes out of business, their loss is not included in the total profits of the industry, and Apple's share of the profits goes down.
So you could make a pretty convincing argument that this profit percentage number is kinda meaningless. Why not just look at gross profit? Dollars compare to dollars pretty well.
- cwyers 11y agoThe article also notes that Microsoft took a huge loss on Windows Phone writing down the acquisition of Nokia. That's not a loss they're going to repeat -- Windows Phone may well continue to lose money, but not that level of money.
- mcphage 11y ago> For instance, if someone new enters the phone market, and spends a ton of money and loses a LOT of money, the total profits for the industry go down, and if Apple makes the same dollar profit as the year before, their profit share number goes up. I think it said that the 92% figure was based on the top 8 manufacturers, which are mostly stable in terms of who they are from year to year.