It’s Not How Much You Sell

It really isn’t.

Traditional companies still think along the lines of “lower the price, sell more, and make more money.” They try hard, very hard, to turn each invention or discovery into commodity, something that could be easily recreated and assembled by not-so-skilled workers whose only job is to follow some standard operation procedures.

But the real bottom line is how much money you make.

Apple is living-proof that market-share no longer matters, mind-share does. When everyone is thinking and talking about you, you will be able to sell something that others are giving away for free, for a huge profit.

Before the introduction of the iPhone in 2007, cell phone manufacturers and service providers were busy figuring out how to lower the handset price so that they can entice their customers into multi-year contracts and make money on service plans.

When iPhone was first launched, even Bill Gates said something like, “let’s be honest, it’s still only a cellphone selling at $500.” Yes, it was, and it totally worked. Today, with just 3% of the smartphone market-share, iPhone has completely swallowed the lion’s share of its profits.

Create or die.” It doesn’t get any simpler than that.

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