Smart Phones as the Next Frontier?
An interesting article from the Wall Street Journal compares the market share and profit share of a few major handheld manufacturers. Surprise surprise- Apple and RIM both have extremely high profit/market share ratios, accounting for 35% of the industry’s profits from just 3% of industry market share.
I’m a big supporter of the school that says statistics can be molded to say whatever you want: It’s fairly obvious that cost does not scale linearly with increase in function- at some point the curve flattens out, mostly when you stop adding hardware features (that require more components) and start adding software features (App Store, anyone?). But I think this is pointing towards a larger trend.
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