As someone who owns both an iPhone 4S and a Galaxy Nexus, I can't possibly bring myself to believe that Apple is going to continue making outsized profits in the cell phone market. The Galaxy Nexus is just too good a competitor; Android has gotten so much better. Maybe Apple will find a way to reinvent the smart phone again (a la MBA or iPad to laptop). Barring that, I don't see how they can maintain their dominance.
Profits are what matters, naturally, but I think market share is the writing on the wall here.
So it goes. Company innovates and offers a wonderful new product, makes ridiculous profit, is shamelessly/lovingly ripped off, loses edge, has to come up with the next big thing or die. The story of free enterprise since forever. This time isn't different.
Keep in mind that Apple makes a superior (or at worst equivalent) product, sells it for the same price, and makes 4x the profit.
I agree that market share is a leading indicator, and that Apple's biggest challenge is to run faster than everyone else, while keeping the imitators at bay and not outrunning consumers or the laws of physics.
But they've got some runway due to their efficiencies (and cash). It's not sexy, but it's how Tim Cook earned his job, and I don't think anyone at Apple is confused about any of the above. :)
Profits are what matters, naturally, but I think market share is the writing on the wall here.
So it goes. Company innovates and offers a wonderful new product, makes ridiculous profit, is shamelessly/lovingly ripped off, loses edge, has to come up with the next big thing or die. The story of free enterprise since forever. This time isn't different.