#9331512, By FutileResistor How long before Apple die?

  • FutileResistor 29 Jan 2013 19:42:05 1,243 posts
    Seen 7 months ago
    Registered 9 years ago
    Apple won't die. Leave aside what has happened over the last 6 years with the iphone and ipad and which has propelled them from an interesting medium sized company to the biggest company in the world by market cap.

    Apple won't die because they will never chase the mass market over making a profit. Apple had the chance early on to absolutely bury Android by reducing the price of iphones but they refused to go for market share over profits.

    Apple did this for years in the PC market making net profit margins of 15% plus while dell and HP were getting by on about 5%. There's a reason why getting a Mac over a PC is mocked by some PC fanboys as paying the apple tax.

    Apple targeting profit margin over market share means that even if Apple's market shrinks, they will still continue make profits hand over fist. Last year Apple's net profit margin hit an absurd 30%. This meant for example that while having only 9% of the phone market Apple made 75% of the profits. Thus even if Apple becomes a niche player in the still growing mobile computing sector, they will survive because they will be a very profitable company regardless.
Log in or register to reply