Horace Dediu at Asymco continues to write some of the most insightful smartphone market posts around. One of the more insightful posts has been his recurring series on revenues and profits in the space. His most recent update: Apple controls 28% of revenues and 66% of profits. Google, by some accounts, is now approaching 50% market share.
But here’s the problem and the thing that has me thinking: if Android vendors are all driven out of business because they can’t make a profit then how does Google maintain its Android market share? Does having market share mean that eventually you will make a profit? Or does making the majority of profits mean that other companies starve to death and thus their market share eventually disappears as they go out of business?