This daily post is a day late but as I wrote on Friday, I found the IDC data estimate putting Android market share at 75% as an alarming warning sign for Apple. The problem is that Apple is a premium priced producer which makes relatively high end technology products. This means high margins but also gives competitors an opportunity to undercut on price, as we are seeing in the tablet market where Amazon is selling at cost. Apple's strategy has to address this reality to a degree by cutting price, which they have done, most emblematically with the iPad mini, a defensive product meant to stop the 7-inch tablet onslaught from Android manufacturers. The result is eroding margins.
The eroding margin problem need not slow growth at Apple if the market maintains robust growth due to high adopti...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.