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To: Swordmaker
No, Zhang Fei, "profit share" is not a "silly term." It is the only thing that counts in the long term. Your MARKET SHARE chart has nothing to do with profit share.

Actually, it does. When Motorola and Nokia were king of the hill, they had high market share and the lion's share of the profits. Their market shares shrank and those profits continued flowing, for a few years, as their products continued to be hot. Then their products went ice-cold and they started losing money hand-over-fist.

iPhones have not been affected, yet. They are still going through that honeymoon period. When it happens, it will seem sudden. But it's been a long time in coming, just as Motorola and Nokia seemed to fall off their perches suddenly. It wasn't sudden. They just gave their competition room by pricing their products too high. It's not a bad strategy for maximizing profits. But the fall from grace will not be pretty. My prediction is that in three years, AAPL shareholders will associate the good old days with a $50 stock price (without any splits, spin-offs or special dividends).

76 posted on 04/12/2015 4:21:35 PM PDT by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: Zhang Fei
Actually, it does. When Motorola and Nokia were king of the hill, they had high market share and the lion's share of the profits. Their market shares shrank and those profits continued flowing, for a few years, as their products continued to be hot. Then their products went ice-cold and they started losing money hand-over-fist.

But the conditions are not at all analogous. Apple has not ever had a high market share, yet has 93% of the last quarter of 2014 of ALL phone profits. You don't seem to grasp the differences in the markets. The companies you were talking about never had anything like that disparity or the longevity of such a disparity as Apple and the continued growth of Apple. NONE of the had the margins that Apple has maintained since the iPhone was released. Sorry, not the same story at all.

Your pet theory of specific cell phone companies having a Hay Day in the sun is nothing. . . and not true to history.

Nokia was killed by not moving forward with multi-touch screen technology until it was too late. Motorola didn't move into the smartphone market and stuck with the dumb/feature phone market. They just didn't move at all. Even when Apple tried to help them by making an iTunes phone with them, Motorola sabotaged the effort by limiting the number of tunes to 100. . . and refusing Apple's help on user interface. They made a "Feature Phone," because they knew better.

77 posted on 04/12/2015 4:35:53 PM PDT by Swordmaker (This tag line is a Microsoft insult free zone... but if the insults to Mac users contnue...)
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To: Zhang Fei

iPhones have not been affected, yet. They are still going through that honeymoon period.

Honeymoon period? Since 2007?

83 posted on 04/12/2015 5:46:09 PM PDT by SamAdams76
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