Don't Worry About Market Share. Focus on Profit Share Instead

Here's why market share may be a false measure of success.

You might think that with a market capitalization now of over $1.1 trillion, Apple owns the vast majority of the smartphone market. Logical, but wrong. In fact, Apple had under 25 percent of the total handhelds shipped for most of 2019 and was actually the number two in the market that year.

So why do people admire and extol Apple as the leader in the handheld device market? It's not because of their dominance in the overall market. It's because while they don't have the lion's share of the market in volume, they do have the vast majority of profits.

While Apple had under 25 percent of the market by units, it took home over 60 percent of the total profit-share of the industry. By focusing on high-value customers and creating high-value products, it focuses on the higher end of the market where the majority of the profits lie. As a result, the remaining 85 percent of the handhelds shipped have to fight over the crumbs that remain.

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https://www.inc.com/bruce-eckfeldt/dont-worry-about-market-share-focus-on-profit-share-instead.html