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On this episode of First Ring Daily, with Apple’s keynote now in the rearview mirror, it’s time for the hangover episode.
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<blockquote><em><a href="#358764">In reply to Michael_Miller:</a></em></blockquote><p>This would be accurate if Apple were actually selling fewer devices year over year. iPhone and iPad are trending better than last year. The Mac is lagging. </p>
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<p>Paul seems to be confused on what marketshare is. Revenue is dependent on unit sales not marketshare. So the argument that Apple is losing marketshare and thus raising prices to maintain revenue really doesn't make sense. </p><p><br></p><p>Here are some examples of how marketshare doesn't equate to revenue:</p><p><br></p><p>In year 1 Apple sells 100 widgets and gets a market share of 10%. They charge 1 dollar a pop for their widget and make 100 dollars. </p><p>The next year Apple sells 200 widgets but the market for widget does much better and Apple only gets 5% market share. Even with the marketshare they still double their revenue and make 200 dollars. </p><p>The third year the market for widgets bottoms out and Apple only sells 100 but they actually do better than their competitors and their marketshare jumps to 30%. Even with that jump they still only end up with 100 dollars. </p><p><br></p><p>Yes all the examples are extreme but it illustrates the point that marketshare doesn't correlate to revenue it is unit sales fluctuation that impacts revenue. </p><p><br></p><p><br></p>
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<blockquote><em><a href="#359302">In reply to Chris_Kez:</a></em></blockquote><p>Marketshare is the number that Paul consistently returns to for the mark of success of a product. This isn't isolated to Apple he does so with just about everything. Look at the Nintendo Switch article from earlier this week. Back in the days of the super site he actually said "Marketshare is the only number that matters". So, no I'm not being a pedant I truly question Paul's grasp on business fundamentals. In fairness Paul doesn't run a business blog he runs a technology blog so it isn't his wheelhouse or the focus of the site but it does lead to some rather odd comments. </p><p><br></p><p>As for Apple goes, if you substitute market with unit sales in what Paul said, it is still wrong. Sales aren't going down which is what he said and, based on your comment, is something you agree with. As far as using ASP to grow revenue, that is certainly happening but even then the majority of Apple's revenue growth in the last few years has come from their services (now their second largest business segment and almost doubled in the last few years) and the Other category (up 50% over the last few years). So revenue a significant amount of revenue growth is coming from new products (Apple Music, Apple Watch and HomePod).</p>
Thom77
<p>Apple is insulting the intelligence of their consumers at this point. I bought a HP Envy 13 with Ryzen and a Vega 10 GPU (which incidently can play Madden 19 at lowest settings) in an ultralight package for the same price as the new Air. </p><p><br></p><p>The Ipad still doesnt have an open file system which totally neuters it for me. </p><p><br></p><p>There is nothing they announced i would even consider buying. And to be fair, Microsofts hardwear is operpriced too IMO. i considered the Surface laptop before buying the Envy, but it just wasnt competitive in specs.</p>