What kind of #2 did you think I would write about? Really? No, in this case it’s Apple falling to the wayside as another smartphone maker rises to #2 in sales. Well, not, not sales exactly. It’s more like unit sales which, when combined with competitors, makes up the guesstimate called marketshare.
Research firm Counterpoint employed their suppository technology and came up with numbers that are completely unattainable. Smartphone marketshare. Wait. Did I say unattainable? As in, nobody publishes real numbers? Yes. But that would be wrong. Every quarter Apple publishes how many iPhones were sold– not shipped— and nobody else in the business makes public their sales numbers.
That makes everything Counterpart publishes a guesstimate at best.
Regardless, let’s assume some degree of accuracy in the guesses and assume that Samsung remained the world’s leader in smartphones and Apple fell from grace at #2– as if there is grace in #2– toppled by Chinese smartphone maker Huawei. These second and third place numbers may change over the next six months as Apple ramps up iPhone 8 production but allow me to point out something about such marketshare numbers. And, no, not just the fact that they’re guesstimates.
Marketshare is the least important of major metrics that determine a product’s position in the market and success as a product within a market segment.
That’s right. Marketshare is mostly worthless as a metric, so why do so many research companies publish such guessing drivel, and why do so many technology publications jump on the marketshare bandwagon.
First, such numbers are easy to come by because they take seed where suppositories go. In other words, marketshare numbers are easy to make up and since only Apple publishes such figures, nobody can question accuracy anywhere. Nobody knows what real marketshare numbers are, so nobody bothers with anything except guesses.
Second, marketshare is not as important as a whole host of other numbers which seldom get mentioned by researchers and almost never mentioned by technology drivel writers.
What’s more important than marketshare? Almost everything.
For example, total revenue is more important, but needs to be combined with gross margins (how much money is made on each smartphone sold), and that produces profits, perhaps the most important numerical component of all.
Here’s the deal and it’s fact, not fiction. Marketshare numbers aside, as it should be, Apple makes more total revenue on smartphones than anyone else, including Samsung and Huawei and Tso Tso or whatever else rolls out of China these days. And, because Apple’s average selling price is far higher than Samsung’s premium Galaxy line of smartphones, Apple owns the lion’s share of revenue.
That’s just the way it is. Marketshare numbers make for good headlines but such numbers are guesstimates at best, worthless most of the time, and do not indicate the health of any manufacturer.
There is just no way Apple is #2 in the world.