Asymco has posted an interesting chart which helps visualize smartphone vendor performance along two dimensions: market share growth vs. profit share growth.
Using a "vector space" model Asymco compares Apple to Nokia and other smartphone vendors.
The pattern does show that:
● Smartphone vendors grow consistently
● Apple in particular has consistent growth with profit growth faster than share growth
● Nokia in particular has consistent decline with profit decline faster than share decline
● RIM shows profitability concern in the near term. In particular vs. HTC
● Samsung shows some near term share loss, probably due to unbranded vendors
● It’s very rare to have a company lose market share while gaining profit share or to gain market share and lose profit share. This implies that in this market one does not trade off volume for profit.
Take a look below...
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Using a "vector space" model Asymco compares Apple to Nokia and other smartphone vendors.
The pattern does show that:
● Smartphone vendors grow consistently
● Apple in particular has consistent growth with profit growth faster than share growth
● Nokia in particular has consistent decline with profit decline faster than share decline
● RIM shows profitability concern in the near term. In particular vs. HTC
● Samsung shows some near term share loss, probably due to unbranded vendors
● It’s very rare to have a company lose market share while gaining profit share or to gain market share and lose profit share. This implies that in this market one does not trade off volume for profit.
Take a look below...
Read More