Originally Posted by solipsism
1) Profits are important to for-profit companies. Apple with it's low unit marketshare in iPhones and Macs is killing all their competition flooding the market with a cheap, race-to-the-bottom devices. You really think that's the position Apple wants to be in but can't figure out how to get it in. Hint: It's the easily business to be in.
Maybe, but profits can come just as well from lower margins and higher sales.
2) They didn't have the majority of the industries profits in 1992.
true. That doesn't mean that they will maintain the majority of industries profits going forward. Most of the profit at the higher end has been saturated.
3) Mindshare depends on mindshare, not how many people are actively using your product. You seriously think Rolls Royce has worse business model than Alliance Rubber Company simply because they sell units to customers. Insane!
For a software platform mindshare and market share are inextricably linked.
4) Apple is gaining in share (which really should be happening) and Android should have gain more unit share faster than it did but they continually came to market with buggy, complex devices that typical users only begrudgingly use.
Really should not, I suppose you mean. In fact they are garnering market share in the world by aggressively going after some markets. That goes against your points.
5) How can you not remember Apple wanting to get the top 1% of the handset market by unit? They didn't say they wanted the largest number of units sold without regard for dominating the top tier of the market or not making the highest profit from the market.
That was the original claim in the iPhone launch. Apple act conservatively at launch. When iTunes was launched they suggested selling a million a year. They sold a million in a week. Now that they own the music download market do you think they want to lose it? Far better to remember Jobs saying that Google wanted to destroy the iPhone and Apple weren't going to let them. This means - they want to sell as many as Android. In his last appearance at a financial conference call, Jobs said that Apple were ( then) selling as many as Android activated. He was clearly agitated by the android activation figures.
6) You saturate the market from the top down (picture a pyramid) or you risk losing your mindshare and profits. Going in with multiple devices all over the map in a vein and haphazard attempt to capture the entire market at once is foolish. You build carefully! You shouldn't have to have any business education to understand this basic fact in life.
Nobody is talking about anything haphazard, Thats your spin, and straw man. I am merely saying that they will have different iPhone models much as they have different lap top models, covering most price points, including the lowest. In terms of iOS devices I can get one in the UK Apple store for £169 as it is - the iPod touch. However the market for smart phones is now much bigger than the market for MP3 players ( even if, in reality, all thats different is a GSM chip, and some telephony software). They have the ability to do this.
7) Again, Why would Apple want to follow Google's model of making no money on Android over their model of making the majority of the world's profits?
The reaction to a fairly benign suggestion that Apple will produce more than "one model a year" at some time in the future always amuses me. Same group who deridied the 3GS continuing.
Apple is seeking to maintain profits and increase market share. Not maintain ( or drop) market share and increase profits.