The analyst website Asymco.com visualizes various financial indicators of mobile phone companies in this interactive vendor bubble chart (follow link, select “Vendor Charts”). It covers the following 8 companies: Apple, HTC, LG, Motorola, Nokia, RIM, Samsung, Sony Ericsson. From the “vendor data” tab I downloaded the data and looked at the revenue and volume distributions for the last 4 years.
Note the sharp reduction in inequality of revenue distribution in the 9/1/08 quarter, when Apple achieved nearly 10x in revenue (and volume) compared to the year before. While the iPhone 1 was introduced a year earlier in 2007, in commercial terms the iPhone 3G started to have strong market impact when introduced in the second half of 2008.
Volume inequality is considerably higher (average Gini = 0.61) than Revenue inequality (0.43) due to two dominant shippers (Nokia and Samsung), which continue to lead the peer group in volume. Only recently has the inequality been reduced, i.e. the volumes are distributed more evenly. Apple’s growth in volume share has come at the expense of other players (mainly Motorola and Sony Ericsson).
Volume share is a lagging indicator regarding a company’s innovation and success. It can be dominated for a long time by players who are past their prime and in financial distress (like Nokia). Revenue is more useful to predict a company’s future growth and success. But the real story is told when comparing Profit. Apple’s (Smart Phone) Profit dwarfs that of the other 7 competitors:
Click on the image to go to Asymco’s interactive chart (requires Flash). The bubble chart display over time is very revealing regarding Apple’s meteoric rise.