13 February 2012 Jay Shepherd

Why choices hurt profitability

Great piece from Andrew Kim at Minimally Minimal from a few months ago on how market share is a misleading metric, and not nearly as important as profitability. Tech pundits are often talking about how Android dominates the smartphone market compared to iOS. But Apple makes far more profit than any other smartphone maker. One likely reason is the bewildering array of choices that Android manufacturers offer compared to just four types of iPhone. Look at Kim’s graphic showing Samsung’s complete smartphone line compared to Apple’s. He sums it up brilliantly:

I truly feel that a simple, focused and powerful product line is what’s not only better for the company but also consumers. Seriously, if you had to buy a Samsung phone, which would you buy?

Tagged: , , ,

Want to learn more?

Get in touch with Jay today