Apple has recently been losing market share to Android; in Q3 of 2013 Android made 81 percent of devices shipped where as Apple only made 12.9 percent. This hasn’t worried Apple executives though. Android may be dominating the market, but Apple is sitting pretty with 56 percent profit in all of the mobile device market in the same period. Apple’s primary competitor is not Android, but Samsung specifically. Samsung made 53 percent profit, totalling over 100 percent between Apple and Samsung, due to losses in other mobile device companies during this period.
Apple has an act of controlling profit in every market they’re in. Even though Android maintains greater than a six-to-one advantage in market share, Apple still sells more apps and they generate more advertising revenue than Android.
It becomes quite apparent, after reading about this, that Apple’s prices are significantly higher than Android. The loss of market share Apple faces does not worry them mostly because Apple’s sales, revenue and profit continue to rise. Apple is evidently not losing their consumer base to Android, Android is just coming out with cheaper mobile devices in order to tap into a new consumer market.
References:
Bradley, Tony. “Android Dominates Market Share, But Apple Makes All The Money.”Forbes. Forbes Magazine, 15 Nov. 2013. Web. 16 Nov. 2013. <http://www.forbes.com/sites/tonybradley/2013/11/15/android-dominates-market-share-but-apple-makes-all-the-money/>.