Lines like that infuriated market watchers who have been scoring the smartphone game by hits rather than runs for years.
The angriest response came from Jay Yarow at Business Insider, a publication that likes to describe Apple’s market share as “dead in the water.”
Yarow posted a piece Friday called Apple Fanboys Are Crazy To Celebrate Apple’s Tiny Smartphone Market Share (since dialed down a notch to read “Apple Should Be Furious That It Has Such A Tiny Sliver Of The Smartphone Market”).
The solution, Yarow believes, is obvious: Apple (AAPL) should lower the price of the iPhone. “It’s great that Apple’s über profitable. It would be even greater if more people could afford its phones.”
That misses the point, Benedict Evans argues in On Market Share.
The result is a chart that looks like this one …
… which shows Apple and Samsung capturing between them nearly 100% of the operating profit in the global market for all cellphones — smart or otherwise.
Weighing in from Daring Fireball, John Gruber singles out the one paragraph in Yarow’s piece that he agrees with:
That’s exactly what Apple is doing, writes Gruber.
I guess that’s where I end up. Making the best phones is an expensive business, not just because the aluminum casings cost more or the devices are harder to assemble, but because of everything else Apple pours into its products — the design work, the warranties, the telephone support, the over-staffed retail spaces, the Genius Bars, the online stores, the developer conferences, the long-term investment in capital equipment and the R&D on new products — R&D whose happy beneficiaries in the past have included Samsung, Google (GOOG) and all those Android users.