HTC’s New Tablet: Doomed to Fail

  • Avatar

    Posted: 04 September 2011 11:06 PM #31

    I don’t know how many times people like Horace or Gruber have to hammer the point that unit market share is trumped by revenue and profit share. HP is the #1 PC maker by market share, yet they’re getting out of the business because their profit share was too low.

    The crew at thisismynext noted that Acer was in denial of what they called the “tablet effect”. I think the one gal tried to point out that it was in fact the iPad effect, but she never got her point across. They did notice that Acer went from the up and coming contender in the PC market to a company losing money. That’s what happens to companies who shoot for market share by shipping products with razor thin margins.

    I agree that the 60% market share attributed to the iPad is bogus, but it won’t matter if that comes true at some point because that same market share number will still represent 90% profit share.