Wednesday, September 11, 2013

Why do we include unprofitable products in global smartphone market share?

When we look at measuring the market shares of various smartphone manufacturers today we first of all can observe the battle going on between the two OS platforms, iOS and Android.

However, most of the attention in both mainstream media and in dedicated tech media has focused on the occasionally shrinking market share of the Apple iOS device family. And while this is certainly true, I would like to ask the question:

Is this measurement relevant?

In the smartphone space there are currently very few players that actually make money off their products. It is at the moment basically Apple, Samsung and possibly some other minor players.

If we only measured the profitable share of the market, would that be a better indicator of success and an indicator of where things are going in the short term?

Only the profitable ventures will gain proceeds from their products to re-invest in further development and consolidation of their market shares as well as support their App and developer communities.

What would the profitable market look like if we measured the market shares that way?

One downside with focusing singularly on this measurement would of course be the risk of missing some new upstart that initially is bound to be bleeding money. 

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