The French Connection: Apple France Improves


Apple France, which is Apple's third-largest market globally, has made major gains in unit growth, although its market share still lags, MacGeneration notes in a lengthy report.

Both Gartner and IDC have published positive numbers on Cupertino. Gartner says unit growth in Q1 2004 increased 23% and IDC argues it's even better: 26%. In total, Apple France posted growth figures of 10%, a major turnaround on Apple's previously declining position in the French market. However, this growth contrasts with an overall rise in PC sales of 20% in France.

However, as MacGeneration notes, Apple's market share is still a paltry 2% for 'office computers' (desktops, presumably) and 4% of the portables market. The article says that iBook and PowerBooks have been Apple's main performers driving this unit growth

MacGeneration also cites Apple France boss, Jean-Rene Cazeneuve, who argues that the data processing market in general has recovered strongly, and this accounts for some of Apple's recent gains (France has also recorded very strong economic growth figures of late). Cazeneuve sees the figures as indicative of the resurrection of Apple France, and growing market acceptance of OS X in France is also part of the resurgence.

Interestingly, Cazeneuve also sees Apple's performance as quite distinct from the rest of the PC market. If we understand him correctly, he's alluding to the notion that if the PC market grows at 20%, Apple doesn't have to match that to be successful. Cazeneuve also notes that Apple sold $200 million in software worldwide last quarter, a significant chunk of its total sales.

Analysis: We can probably expect Apple to post consistent gains in France in coming quarters, due to higher levels of consumer spending brought on by the strong economic recovery. We wouldn't expect miracles in Germany, though, where recovery is taking a long time in coming. The UK, by contrast, where Apple has never had a large presence, has posted incremental gains in recent years, with the Mac's and iPod's popularity evidenced by strong attendances at the London shows and good performances by the Mac media there (MacUser, MacFormat, Macworld UK). There was even a 'My iMac' mag in the UK for a while, though I don't know what became of it.

Apple needs to focus more intently on its overseas markets with wealthy demographics, particularly as its # 2 cash cow, Japan, hasn't delivered the kind of revenues it used to due to its slow emergence of the economic stagnation of the 1990s and early this century.