1 Silly Reason Why Apple Inc. (AAPL) Sold Off Today: Google Inc (GOOG), Microsoft Corporation (MSFT)

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Sources: SEC filings and IDC. Calendar years shown.

At a very conservative average selling price of $400 (actual last quarter was $467), that’s over $35 billion in sales — hardly anything to be upset about for a product category that didn’t exist three years ago.

We’re still talking about one highly profitable company gobbling up nearly half of the market, while the Android OEMs divvy up most of the rest and eat each other alive. The Android army will inevitably run into slim margins at best and substantial operating losses at worst amid commoditized competition, while also trying to compete with Google Inc (NASDAQ:GOOG) itself.

Ultimately, Apple Inc. (NASDAQ:AAPL)’s tablet domination is kind of an anomaly. The company is frequently the underdog in unit share terms, but almost always top dog in profit share terms, and that’s what investors are overlooking right now.

The article 1 Silly Reason Why Apple Sold Off Today originally appeared on Fool.com and is written by Evan Niu, CFA.

Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Amazon.com, Apple, and Google. The Motley Fool owns shares of Amazon.com, Apple, Google, and Microsoft.

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