Re:Samsung overtakes Apple as world's most profitable mobile...
by adventured on Saturday July 27, 2013 @10:28AM
(#6112977)
Without profits the company doesn't exist; their market share doesn't exist; their ability to provide support for their phones doesn't exist; their ability to update / fix / improve their software doesn't exist; their ability to invest into the expensive infrastructure necessary to provide high quality app markets doesn't exist; their ability to market their phones to drive adoption doesn't exist; and on and on.
Profits matter for consumers as much as market share does, even if they don't realize it. The phone hardware business is a very expensive and difficult market. Companies like HTC demonstrate just how hard it is to stay in the game, and just how expensive it is. Being profitable is a requirement to produce at the massive economies of scale necessary to compete in the smart phone market (or you have to sell less units while charging a lot more for them, but you still require that profit to keep churning out new phones). The only reason Blackberry, for example, still exists at all is that they were so profitable for so many years, and able to build up a cash hoard; without that, they'd already have disappeared.
Profits matter for consumers as much as market share does, even if they don't realize it. The phone hardware business is a very expensive and difficult market. Companies like HTC demonstrate just how hard it is to stay in the game, and just how expensive it is. Being profitable is a requirement to produce at the massive economies of scale necessary to compete in the smart phone market (or you have to sell less units while charging a lot more for them, but you still require that profit to keep churning out new phones). The only reason Blackberry, for example, still exists at all is that they were so profitable for so many years, and able to build up a cash hoard; without that, they'd already have disappeared.