Market share vs profit share
Market share isn't what Apple is going after, profit share is.
In figures for the three months to the end of May, Kantar Worldpanel says that Samsung took a bite out of Apple's US market share to overtake the fruity firm. This is as much down to continued strong sales of the Galaxy S5 as to the introduction of the Galaxy S6. Carolina Milanesi, Chief of Research & Head of US Business, told …
There's no such thing as profit share. There's profit margin. There's no such thing as 'profit available across the market' because it's a function of the difference between revenues vs costs within each single company, and neither are fixed.
What there is probably a fixed quantity of is dufuses who are too easily parted with their money. In some contexts we'd call them victims of fraud. Apple calls them customers!
... to be able to read Samsung's press releases here rather than having to navigate to their site. Some things an actual journalist would actually include:
1) Whether these are units shipped or units sold. Samsung has a history of channel stuffing to pump their numbers, especially after the release of a new model.
2) Since this is quarterly "news," a volume comparison to the previous calendar and year-ago quarters would be useful.
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That's not Samsung's mobile division doing that, but their semiconductor division. They operate as essentially independent businesses, and report their profit separately.
Anyway, the margins on chips are small because what Samsung sells are commodity products (DRAM, flash) and commodity services (chip fabrication) which would hardly compensate for the fat margins they make on Galaxy S and Note phones even if they were in the same division.
Samsung phone sales and profits have been dropping, but they are still making significant profits, much more than any sane company would give up voluntarily.
And their semiconductor business is growing, in revenue and profits, and makes a lot more than the mobile division nowadays. Huge sales to Apple probably help. (I'd really love to know how much Samsung makes from an iPhone 6 vs. a Galaxy 6 sale).
At the beginning of June I had a few hours to kill before my flight out of Denver so I stopped off at a large Shopping Mall in the City.
A Sprint Outlet was offering a Samsung S6 contract where Sprint really did give the phone away over two years.
Is it little wonder that they shifted a shed load of them? If the phones are that good why can't they sell them?
A more reliable stastistic would be sales by value rather than raw numbers. I'm sure the Fruity Firm would come out on top.
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I inferred it was alluding to lifespan as a viable product. "Shelf life" if you like. Seemed to fit with the context: The older S5 model still being the firm's best seller with the S6 coming second. Conversely the faithful fanboisie obviously clamour for the very latest shiny, shunning last years model like some sort of hideous infective turd. (Both Samsungs fell into that void between sales numbers of this year's breathtakingly wonderful jEsusphone and the unthinkably heinous abomination that is last year's jEsusphone)