Is market share the key to profitability?
“In early 2008 we made a strategic decision to focus more on cash flow and profitability than on the market share. Now it’s time to give it up and to focus solely on the market share,” Rajeev Suri, Nokia-Siemens CEO, told Finnish daily Helsingin Sanomat.
So, they have struggled to make a profit since 2008 and now they want to “give it up” to focus on market share. I don’t see how focusing on market share will help them be sustainable (much less make a profit). If you can’t make a profit with your current customers how does adding more help?
Microsoft revenue declines 17% in fiscal Q4
It looks like Microsoft really needs Windows 7 to be a HUGE win. Just like Balmer said last week. Unfortunately Microsoft is stuck between really cheap computers (linux based) and Apple who pretty much owns all the computer sales over $1000. This means Windows-based manufacturers (HP & Dell) are still selling cheap versions of Windows XP to make make any profit off the cheap netbooks that apparently are all the rage right now. Too bad their isn’t any margin for anyone in these products. You have to sell 10 netbooks to equal the profit of 1 MacBook. I guess that makes sense why Apple is doing VERY WELL with only a 8-9% market share.
Mobile phone maker profit estimates
