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Although Nokia sells over a billion phones a year, this proves that you can target a narrow sliver of a huge market with futuristic innovation and still gain the majority of the profit available in the whole market.

Apple even pointed this strategy out in the original 2007 MWSF keynote where the iPhone was announced. They showed their math, pointed out the global annual sales volume of phones was almost 1 billion devices. They then said 1% of that would be a great starting point because that's still ten million phones out the door and it's a good place to carve out a high value niche.




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