eWeek, quoting NPD data for the first quarter, reports that Apple holds a 66% share of the retail market for computers that sell for $1,000 or more. Of the sub-grand market, Apple-branded computers account for a "mere" 14%.
Money quotes from Stephen Baker, NPD, vice president, industry analysis:
• In notebooks they're growing two times the market. Windows notebooks are pretty much flat right now.
• [In the desktop segment,] they're up 45 percent. The [overall] market is down 20 percent. Windows desktops would be down 25 percent.
• I don't believe that Vista's to blame. The vast majority of consumers don't care [about the installed operating system].
• Consumers don't care about features.People see a value proposition in an offering that gives them a great experience.
• Apple has got better distribution than it's had in the last 15 years. They're in the right spot right now. There's the iPod advantage. But the big thing is the stores.
• What Apple drives home: This is a product that we own from factory to finger. We exert some control so that you get the best experience. When you get in the store, we get you what you want.
Even if Vista per se isn't to blame, the first element of change is always dissatisfaction. It may be that Apple offers a simply superior experience, but that "experience" doesn't exist in a vacuum.
And, isn't it more than a little amazing that Apple's taking 14% of the sub-grand retail market with a single, over-priced, long-in-the-tooth offering (the Mac mini)?
If there's a single takeaway NPD's data and analysis, it's that Apple could sell a lot more units if it expanded its sub-$1,000 offerings. I guess the question is, "Could they make more money at the same time?"
What's your take?
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Reader Comments
A missing point: New apple computers are Windows computers that are made to work on OS X. Apple laptops are essentially Windows laptops. Buying the apple hardware now gives you OS X and the ability to use Windows Vista. Of course you can run slightly hacked versions of OS X on almost any new PC made for windows, but it isn't quite as easy as just buying an Apple computer and loading windows with bootcamp. If I had the money to blow, that is the main reason I would go with Apple. It's not really OS X vs Windows, it's OS X vs Only being able to use hacked versions of OS X. Also, of course the other thing too.. apple stuff is extremely trendy. They seem to set trend between the merger of technology and style. I'm sure their current line of computers will seem like early 90's cell phones do today, but they're now's version of sleek.
Posted by Guest Poster #1 on 05/19/08 3:03 AM
You are missing the point. Apple sells iPods to new buyers who have no allegiance to a PC who in turn, buy a Mac. The faithful will always buy Macs. The PC-frustrated will sometimes buy a Mac and the rest will never buy a Mac. Great numbers of people aren't buying Apples because they run Vista. They are buying Macs because they really like them. Go back under your rock.
The Point Posted by Guest Poster #2 on 05/19/08 8:20 AM
Poster #1 above sees through the Mac fog. Macs have morphed into Designer PCs plus iApps.
Posted by Guest Poster #3 on 05/19/08 11:43 AM
You wish!
Poster #3 Posted by Guest Poster #4 on 05/19/08 3:14 PM
Exactly Guest Poster #3. Liking an MP3 player from a particular company is not enough reason to buy the same brand's computer. The point I was arguing anyway, was that Apple computers ARE Windows PCs. The writer here refers to non-apple x86 computers as 'Windows PC's, yet both run windows. Everyone I know with an Intel Mac also runs bootcamp with windows xp. Microsoft now makes money from owners of Apple computers, so I don't see the 'mac war' that lots of people refer to. Microsoft isn't so much the competition anymore.
Stephen Baker assumes the apple computer customers are a whimsical, ipod loving, and extremely impressed at the apple store. People often come to me for purchasing advice for computers and related things. I've never advised buying an Ipod, but I have sold several people on the idea of apple laptops. Its ALL about features and OS IS IMPORTANT. Desktop computers are usually periodically upgraded more than laptop computers, and generic x86 computers simply have more upgrading options than apple computers (if you want everything working in os x). That's why I would go for an apple laptop over a non-apple laptop, but probably not an apple desktop over a non-apple desktop. That might also explain why their laptops are killing the competition. I think that even if these people don't really know about the features, people do tend to ask questions when spending that much money; and those answers do matter.
Guest Poster #2: Of course people buy them because they like them. That was a pretty pointless sentence. Lots of people like OS X, but many new customers are backed by the idea that they can always use their familiar Windows OS.
Nice one there at the end Guest Poster #2. You 'MAC ONLY' people are the sassy snobby type. I think calling your Apple computer a Windows PC really pushed your buttons. I can tell you're one of the 'mac faithful'. I think you should get some help for that. If anyone needs to wake up, it's you.
Posted by Guest Poster #1 on 05/20/08 3:31 AM
Thank You IGM for providing a forum that even the most uninformed can speak their uninformed mind. Like, for instance, "Guest poster #1".
So for those who do not get it, Here it is: It's the whole experience. The perfect grape; plump, sweet, perfect looking and no seeds. Purchased at your local grocery store at the recommendation (and support) of the produce man. Sure they are a little bit more, but each bit is risk free enjoyment.
So arguing over the OS's or the esthetics or any other single aspect alone is pointless.
Who else does it? Who else in the industry provides:
- The latest technology, flawlessly executed
- With award winning design
- In a form factor that uses only the best material
- That offers features that are unique in the market
- That does not include needless capability that underperforms
- Who makes an OS that is user friendly, secure, stabile, complete and pleasing to the eye
- Who makes the most common apps most people use
- Who makes the most common accessories that just work
- Who has a local store
- Who provides in store service
- Who provides free in store service
- Who provides free in store training
- etc........
- And at a competing price?
The way I see it buying a Dell from C. City is in no way competition. The technology is pieced together components made by many other companies with many different ideas on quality. The design is, well just a box. And we all know where the OS comes from. What value does Dell provide in this experience? Help desk support from India? The local merchants repair department sucks. And they sell so many different brands and systems they have no motivation to make you a happy Dell consumer. So that leaves you with coming back and forth between the retailer and the help desk. And how much of the sexually active population really upgrades their computers video card or processor? Dude that is so 90's. The answer is not much. The home built suppliers of the world are going away because there is a small shrinking market for this stuff. Most folks want to treat their computer like their toaster.
The short answer is Apple provides an ecosystem. And yes it is controlled but it has to be. I think Apple is just now getting to the point where people who had been told "do not go Apple they are............... and that is bad" are seeing for themselves through the iPod or iPhone or their friends that the Apple model just makes sense. And that the entire experience is risk free enjoyment.
FYI before you try and flame, I am certified in most major and minor OS's and I am a senior engineer. Oh and another thing, Apples and "PC's" are not the same. Just because they have the same processor does not mean the underling architecture is the same. For example, PC's still use a MBR BIOS that is based on 20 year old technology. Apples on the other hand is EFI and thus the need for Boot camp. Just another example of Apple leading the industry.
rtm
OK enough Posted by RTM on 05/20/08 11:23 AM
Stop suckin' Jobs' dick, Mactard.
Posted by Guest Poster #7 on 05/20/08 11:54 AM
Mac sales skyrocketed because Apple abandonded "thinking different" to build industry standard PCs. Windows OS available and Intel chips only. Duopoly market shares rose from 90% to near 100%.
You no longer stress about availability of games and apps -- use Win versions. If Mac OS becomes irrelevant, use Win OS or Linux on your pretty PC box or laptop. The Win-vs-Mac ads provide comic diversion.
Posted by Guest Poster #3 on 05/20/08 12:31 PM
First off, to "poster #7", your parents must be proud and of course, your position is hard to deny. It is why Steve is so busy.
To "poster #3", I agree that moving to Intel processors made a difference in the sales numbers. But I think that is a minor influence. After all the experience is exactly the same as with PPC. As for the app availability, moving to x86 has not dramatically increased the number of apps available to the mac using community. I think the fact that there are "many more" apps made for wintel PC's is both a distraction and a demonstration of poor programs. If there was a program that did what it did very well the market would bare the competition. For the most part any app on wintel has a complement on OS X. I would argue that the Mac app is better and there is no need for many others. There is a great series on ARS that discusses this point exactly. As for games in particular, even MS knows that the sexually active public wants to use a console on their TV.
enjoy
rtm
And they continue to have no logical argument Posted by rtm on 05/20/08 8:13 PM
