For those who claim that Apple has lost its way since Steve Jobs died in 2011, or that Apple is no longer the company that Jobs built because chief design honcho Sir Jony Ive is on the way out the door, I say poppycock.
Design snafus and tech scandals notwithstanding– they happen now and they happened under Steve Jobs’ reign– Apple dominates the technology industry more now than it ever did; in every product category of significance, in revenue and profits, and in mindshare. Apple is a giant not sleeping.
Every business in every industry or service has basic numbers that tell the tale of health. When revenue stalls or profits fall, business is moving in the wrong direction. How does Apple compare to the competition? What are the real numbers vs. those of lesser importance?
One number we see touted by members of the media is iPhone’s marketshare. As it was with Windows vs. the Mac, Apple lost the marketshare war years ago. Yet, as it is with every Apple product of significance, Apple’s real numbers tell a different tale than marketshare’s fake numbers.
Marketshare in every product category where Apple competes is a guess; a guesstimate, an estimation. Why? Apple stopped giving out actual unit sales for iPhone, iPad, and Mac, and competitors never have, so there are no real numbers to tell marketshare. Does marketshare matter?
Marketshare is a single metric of almost no value to a company (other than one about to be hauled into court for monopoly abuse). Which would you prefer your company own? The most widgets sold? Or, the most revenue? Or, the most profits?
Apple has never been a company about marketshare, but has always focused on growing revenue and profits.
Consider these basics.
iPhone owns about 60-percent of the entire smartphone industry’s revenue and around 80-percent of the entire industry’s profits. Samsung owns most of the rest. Does marketshare matter? Nope. Samsung’s marketshare for Galaxy-whatever devices is higher than Apple but revenue and profits are lower.
The Mac owns nearly 50-percent of the entire PC industry’s profits. That means all the money made by all other competitors barely equals what Apple makes on the Mac.
Marketshare don’t mean diddly squat.
The same situation regarding revenue and profits exists with every other Apple product of significance. iPad, AirPods, Apple Watch, Beats headphones.
Wait. There’s more!
Apple’s retail stores are huge moneymakers which makes more revenue and profits per square foot of retail space than any company. What about App Stores? These are estimates, of course, but the pattern remains the same. Google Play’s revenue is 80-percent less than Apple’s iOS App Store despite Android users downloading nearly three times as many apps as iPhone or iPad users.
Simply put, Apple dominates every category where it chooses to play and in the numbers that count. Marketshare is a nearly worthless metric constantly touted by the media thanks to its anti-Apple bias; the same media who seldom compare or contrast Apple’s dominance in what counts.
Revenue-share, profit-share, and mindshare.