So, there is a certain company in China that just topped Apple and the iPhone to take the second place spot behind industry giant Samsung. So, all around Huawei’s headquarters, employees are chanting, “We’re #2, we’re #2, we’re #2.” That’s funnier than it should be.
Does. Not. Matter.
It doesn’t really matter where or when the countdown to #2 began, various guesstimators are guessing that Apple’s iPhone sales have stagnated while Huawei’s continue to grow, and that makes the Chinese manufacturer #2. Perhaps in more ways than one since the U.S. government doesn’t care much for their gear.
Here’s the deal, folks. Marketshare is the least important of the major metrics that determine a product or a company’s success in the market.
Least. Important. Metric.
So, what’s more important?
Uh, profits. Um, profit share. Oh, revenue. And, uh, um, oh, how about revenue share and gross margins, and perhaps a few others, but those will do the job.
So, why do prognosticators use marketshare when it is not really important at all?
Marketshare is a great unknown. It’s a guess. None of the researchers or guesstimators or anyone else with a thumb on the heartbeat of the smartphone industry has a true blue clue about actual, factual marketshare numbers.
How do I know? Because Apple is the only major technology gadget maker to report actual, factual sales unit numbers. Samsung does not. Lenovo does not. Huawei does not. Those totals are left up to the likes of Gartner, Canalys, and others that just guess their numbers.
For example, Andrew Orlowski:
Overall, smartphone sales worldwide were 374.3 million in Q2, compared to 366.6 million a year ago
There is no possible way Orlowski could know those numbers to be factual. If they’re not factual, they’re fictional, right? At best, guesstimates. Why don’t the various and sundry smartphone makers on the list of major manufacturers complain about such made up numbers?
Isn’t it likely that the guesstimators publish numbers that are too high for every maker except Apple? Which smartphone makers have greater revenue than Apple? Or, higher gross margins? Or, more profit than Apple? If the numbers quoted every so often by guesstimators were near accurate or lower than accurate, wouldn’t Apple’s competitors complain?
No. Because any complaints would tell the world that being #1 might be the wrong number. That Huawei basks in #2 should be enough of a story.