Apple's (NASDAQ:AAPL) unit market share in the tablet market has been on the decline, which includes some negative implications on Apple's revenue share. Morgan Stanley analyst Katy Huberty estimates that Android OEMS are now collectively generating more revenue than Apple. Huberty estimates that Android OEMs grabbed 46.2% of tablet revenue last quarter, slightly ahead of Apple's 45.6% revenue share. In particular, Samsung and Lenovo have been making gains in the tablet market.
There are a lot of ways to consider market share, with unit share and revenue share just being a couple. Investors sometimes also like to look at profit share, although profit share is extremely hard to calculate. Apple is organized around function rather than by product, which means it dynamically allocates resources and talent toward wherever it's needed most. That means it's not possible to directly arrive at an iPhone or iPad operating profit, since those costs are always changing. Still, it goes without saying that Apple is undoubtedly far more profitable than any of its other Android rivals.
In this segment of Tech Teardown, Erin Kennedy discusses the details of Apple's tablet revenue share with Evan Niu, CFA, our tech and telecom bureau chief.