The most impressive thing, though, isn?t Apple?s performance within each of these businesses but the rate at which the overall markets are growing. As the amateur Apple analyst Horace Dediu has pointed out, today, only three of every 10 phones sold in the world are smartphones. All the rest are dumbphones. But that number is growing rapidly?more and more people keep switching from basic cellphones to iPhone-like smartphones. There?s a good chance that Apple won?t get the majority of those switchers; a lot of those people are likely to choose cheaper alternatives, especially phones that run Google?s Android OS. But because Apple makes so much more money on each phone than any of its rivals, its profits will still be unbelievable. Last quarter, Apple sold 37 million iPhones. If the iPhone?s sales growth simply keeps up with the rate of growth of the smartphone market, Apple will be able to sell more than 50 million next holiday season?and if it does that, it could see the most profitable quarter in U.S. corporate history.
Source: http://feeds.slate.com/click.phdo?i=00c7718b90cadae89199764ee2a68087
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