You can make a sport car look like Ferrari or Lamborghini, but it doesn't mean you can take on one of them: cuz you don't have a fucking engine to go against them!
I suppose Huawei can definitely overtake Apple in sales if they're selling $50 phones? smartphones? to third-world nations like India, Africa and South America. I'm sure Wall Street will be happy to claim Apple is being destroyed by Huawei in terms of market share. I'm sure Huawei will also exceed Apple in smartphone sales growth. I must be getting too old to really understand what makes a company successful. Maybe times have changed. I don't quite understand how growth necessarily makes a company valuable and successful. I only understand how to balance books and how the books need to be kept in the black. Sure, I realize people can keep using more credit but that leads most people into a hole they can't climb out of.
In Wall Streets eyes a successful tech company is one that burns through it's VC funding to gain market share. Then IPO and burn through the money that brought in, albeit at a slower rate, until:
1) The company achieves an unassailable market share (Google, Microsoft, Amazon), then when the money runs dry, raise prices to a profitable level as their is no viable alternative.
2) The company goes under because they are not profitable. Paradoxically, this is usually accelerated by the company using investor funds to buy another company that is actually profitable in an attempt to buy them some more time to figure out how to sell their own companies product at a profit. In this instance Wall Street is out of the stock long before the collapse of the company and all the jobs it takes with it.
The stock market seems to be run so differently from running a household or most businesses and it makes little sense to me. A company shouldn't be able to keep burning cash or undercutting the competition to gain market share. It's not a sustainable way to run a business, so what's so praiseworthy about it. Don't analysts see this doesn't work in the long run. A company like Samsung might be able to do it as long as its other business ventures are profitable. I wouldn't think there was any way a smaller company could survive. It would have been much better for Apple if they had also branched out into other profitable businesses then they wouldn't have to rely so heavily on the iPhone.
It's not that Apple has not branched out, it is a case of them being victims of their own success (iPhone). 104% of profits in Q3, if iPhone only made 30% of profits then Apple other products would comprise a much larger portion of their earnings which, as stupid as this sounds, would probably help the stock price. Look to services by 2020, if growth stay more or less the same they will have earnings in services in line with many other ridiculously high P/E companies that only have services as their sole source of income. Will that force Wall Street to value the stock at the same P/E, doubtful, but it should overall increase the stock price as iPhone will make up less of the whole.
I'm fairly certain Huawei's overtaking of Apple will be easier said than done but meanwhile Wall Street will say it's going to put more nails in Apple's coffin. What really upsets me is Apple is spending so much money on R&D and capex and yet critics keep saying iPhones are no better than Chinese smartphones at half the price. I can't even imagine how that's possible but my thinking is wrong. It just goes against all the things I've learned over the years. Quality usually costs more money to produce. Besides, what has happened to Apple's economies of scale? Is that no longer effective against smaller rival smartphone companies?
Quality does cost more to produce. Economies of scale usually only help with profitability, which Apple has no problems with. The main issue is currently Apple leans heavily on selecting technologies other companies manufacture or in Apple technologies that are easy to copy once the research and development has been done. The A series chip and secure enclave are the biggest Apple developed tech that is not easily copied. Eventually, Apple will have a much larger amount of hard to copy in house developed technologies and that will make all the difference.
This only shows that Chinese have great respect to Apple as well as Americans. The latest 'innovation' by Huawei according to Forbes is the Mate 9 with 'machine learning'. You might be curious of what fantastic thing the 'machine learning' can do. It is able to move the most frequently used app icon in the home page. Meanwhile Lenovo is going to keep only Moto logged smartphones. Its own brand smartphone will no longer exist.
Overpriced. Still Android. Total lack of brand appeal. Setting a goal not to make the best products and brand, but to take on Apple. I've seen this movie before...he's not going to like the ending.
Huawei is actually good. It created a tablet that looks like iPad Pro (MateBook) except that it runs Windows and it works well. It feels solid. It is cheaper too. And the keyboard is nice too. It's way much more appealing than Surface tablet.
Best of luck to them, but I don't see how a vendor using Android that doesn't excel in either vertical or horizontal integration, much less both, can best Apple in anything other than a worthless (on its own) narrow metric.
It's been many years since Touch ID launched. Has anyone matched its speed, reliability, and security (which includes not storing your actual fingerprint or keeping the data on the main system as the OS)?
It is awesome that Apple is the company other companies aspire to conquer! This mentality spits in the eyes of ALL analysts, bloggers and reporters who claim Apple can't innovate anymore and Apple is doomed,
Do not underestimate the Chinese. Just watch them in the next 10, 20 and 50 years. They were way behind in the last 100-150 years, now they are pretty good at copying/learning/imitating, whatever you call it, new technologies and manufacturing. It will only get better.
On the smartphone front, the Chinese love to have phones with 2 SIM cards (two cell numbers). That's what vivo, OPPO, Huawei have in China. I travel to HK and China often, and I wish my iPhone has it so I don't have to carry to iPhones with me.
Perhaps I should start a company, give away a crap cell phone for free, maybe just pay people to take them, and secure the highest marketshare crowned king by IDC. As the NIN cover of "Hurt" by Johnny Cash, I wear this crown of sh*t, upon my liars chair! I'm going to bet the lion's share of their sales are sub $100 units and that they lose money on the more expensive units due to low volume.
Perhaps I should start a company, give away a crap cell phone for free, maybe just pay people to take them, and secure the highest marketshare crowned king by IDC. As the NIN cover of "Hurt" by Johnny Cash, I wear this crown of sh*t, upon my liars chair! I'm going to bet the lion's share of their sales are sub $100 units and that they lose money on the more expensive units due to low volume.
What would Android market share look like if all Android manufacturers were forced to raise prices to a point equal to Apple's Net Income percent of Revenue (FY2016 21.10%).
I wish like hell that IDC reported market share according to profit share. After all, there are only 10 reasons to be in business: there first is to make profit, and the other 9 don't count.
They don't even own or have any control of the OS they use. The same exact one used by 500 phone manufacturers in China. Two years ago, it was Lenova, Coolpad, and Xiami (sp) for that were about to overtake Apple
What happened to them?
same thing
'market share' not the same as 'profit share' or 'ecosystem lockout'
you can get market share, but if it's a commodity market, and no lock in (iTMS, iMessage, applePay, Continuity, etc), you're only as good as your next phone. and if you can't command a modicum of gross profit to reinvest in R&D and smart people, your next phone is crap, and by 2019, you're being sold on woot for $19.95 per phone.
They don't even own or have any control of the OS they use. The same exact one used by 500 phone manufacturers in China. Two years ago, it was Lenova, Coolpad, and Xiami (sp) for that were about to overtake Apple
What happened to them?
same thing
'market share' not the same as 'profit share' or 'ecosystem lockout'
you can get market share, but if it's a commodity market, and no lock in (iTMS, iMessage, applePay, Continuity, etc), you're only as good as your next phone. and if you can't command a modicum of gross profit to reinvest in R&D and smart people, your next phone is crap, and by 2019, you're being sold on woot for $19.95 per phone.
When we talk of marketshare we colloquially refer to the number of units sold, but it's really just a general term to refer to the percentage of a market accounted for by a specific entity. That entity can be units, profits, or other metrics, like mindshare of a market. If we wish to be clear we shouldn't just use marketshare and assume everyone know we're talking about units sold.
Oh come on, market share is about units shipped all the time. For those who didn't know that: Apples value share of the smartphone market in Q3/2016 was ~30%. Apples value share of the tablet market in Q3/2016 was ~40%.
Both will be higher in Q4/2016 - a bit for the tablet market, a lot for the smartphone market...
Comments
How about something easier like "Jahwho"?
Huawei couldnt beat sales of Discontinued blackberries
Meanwhile Lenovo is going to keep only Moto logged smartphones. Its own brand smartphone will no longer exist.
It's been many years since Touch ID launched. Has anyone matched its speed, reliability, and security (which includes not storing your actual fingerprint or keeping the data on the main system as the OS)?
How about not copying the iPhone's design?
I thought Apple was only 12%-ish of the global smartphone market.
On the smartphone front, the Chinese love to have phones with 2 SIM cards (two cell numbers). That's what vivo, OPPO, Huawei have in China. I travel to HK and China often, and I wish my iPhone has it so I don't have to carry to iPhones with me.
I wish like hell that IDC reported market share according to profit share. After all, there are only 10 reasons to be in business: there first is to make profit, and the other 9 don't count.
'market share' not the same as 'profit share' or 'ecosystem lockout'
you can get market share, but if it's a commodity market, and no lock in (iTMS, iMessage, applePay, Continuity, etc), you're only as good as your next phone. and if you can't command a modicum of gross profit to reinvest in R&D and smart people, your next phone is crap, and by 2019, you're being sold on woot for $19.95 per phone.
For those who didn't know that:
Apples value share of the smartphone market in Q3/2016 was ~30%.
Apples value share of the tablet market in Q3/2016 was ~40%.
Both will be higher in Q4/2016 - a bit for the tablet market, a lot for the smartphone market...