Apple's U.S. Mac market share rises to 8.1 percent in Q3

[AppleInsider]

Apple Inc.'s share of the U.S. personal computer market for the third calendar quarter of 2007 was 8.1 percent, up from 6.2 percent during the same period one year ago, according to preliminary results released from Gartner on Wednesday.

The Cupertino-based company's U.S. Mac shipments grew 37.2 percent year-over-year -- more than twice as fast as any other manufacturer ranked in Gartner's top 5 PC vendors for the three-month period ending September -- helping it snag a spot as the No. 3 U.S. PC vendor overall.

Apple's US-based Mac shipments during the quarter totaled 1,338,000, compared just 975,000 during the same time last year. Hewlett-Packard and Toshiba also posted somewhat healthy growth during the quarter of 16.5 percent and 16.3 percent to garner a 25.7 percent 5.7 percent share of the U.S. market, respectively.

Growth in notebook sales continued to lead the overall U.S. market, Gartner said, with notebook volume exceeding desktops for the first time ever in the third quarter of 2007. However, both the home and professional markets registered weaker than expected growth.

"Economic uncertainty around the sub-prime mortgage lending and lower consumer confidence may have played a role in challenges vendors faced in the U.S. market," said Mikako Kitagawa, principal analyst for Gartner’s Client Computing Markets group. "The third quarter is typically a consumer quarter, driven by back to school sales. However, the preliminary results show that back to school sales were softer than expected in the U.S. market."

Dell was able to maintain the No. 1 position in the U.S. market although its year-over-year growth rate was well below the U.S. average, declining 5.5 percent. The decline was mainly attributed to weaker consumer growth.



Apple did not rank in Gartner's top 5 worldwide PC vendors, No. 5 of which was Toshiba with a 4.4 percent share.

Meanwhile, rival market research firm IDC also released its preliminary third quarter PC share results around the same time as Gartner. It claims, however, that Apple's U.S. shipments totaled just 1,130,000 in Q3 for an overall share to 6.3 percent -- representing growth of just 15.9 percent.

[ View this article at AppleInsider.com ]

[MacTel]

So that may indeed mean they've sold well over 2 million Macs. Nice going!

[riversky]

The only thing is I'd like to see them get to about 20% and stay there. I really don't want Apple too big or they will stumble, get to bloated and act like Microsoft. I want them to still innovate. Really big companies don't......Large enough to get the best developers, small enough to create new and cool things.

Way to go Apple!!!

[ncee]

Originally Posted by riversky

The only thing is I'd like to see them get to about 20% and stay there. I really don't want Apple too big or they will stumble, get to bloated and act like Microsoft. I want them to still innovate. Really big companies don't......Large enough to get the best developers, small enough to create new and cool things.

Way to go Apple!!!

And the stock keeps going up and up and up

Skip

[kim kap sol]

Originally Posted by riversky

The only thing is I'd like to see them get to about 20% and stay there. I really don't want Apple too big or they will stumble, get to bloated and act like Microsoft. I want them to still innovate. Really big companies don't......Large enough to get the best developers, small enough to create new and cool things.

Way to go Apple!!!

This might happen eventually...I don't see Apple ever going above 20% because developing countries will always opt for the cheaper PC (good thing too because the general population of these countries will often enough pirate software to go along with their cheap PC...so developers don't gain from the cheap PC market) and businesses will often go for the cheap PC also (why buy +1000$ Mac when you can get $400 PCs).

15-20% would be enough to gain back some game developers and few big software names...enough to make the Mac a comfortable eco-system.

[mdcat]

A longtime friend wants a new computer because her present one is "slow". Rather than tell her that it's just probably Windows gunk (or possibly spyware/adware), I encouraged her to go to the nearby Apple Store and "kick the tires".

[macFanDave]

I would agree that the sweet spot of market share for Macs would be 15-20%.

Apple has monopolistic practices, but we Mac users actually appreciate them and benefit from them. These practices aren't illegal, because the Mac is a minority platform. Many people believe that you are not compelled to use the Mac because Windows is a viable alternative (even though it really isn't )

If the Mac were to achieve a much higher market share, they may face anti-trust actions.

On the other hand, that 15-20% of the market would pressurize developers like, say, Adobe to keep the release of apps and upgrades reasonably similar for the Mac and Windows.

Also, at that market share, the opportunities for Mac-only developers may make the pursuit more feasible.

It's a nice goal to aim at and I am happy that Apple is approaching it (as opposed to receding from it.)

[tink]

Firing on all cylinders !

[riversky]

Originally Posted by macFanDave

I would agree that the sweet spot of market share for Macs would be 15-20%.

Apple has monopolistic practices, but we Mac users actually appreciate them and benefit from them. These practices aren't illegal, because the Mac is a minority platform. Many people believe that you are not compelled to use the Mac because Windows is a viable alternative (even though it really isn't )

If the Mac were to achieve a much higher market share, they may face anti-trust actions.

That is exactly why they shouldn't get too big. They build the software OS AND the hardware. They would face more scrutiny because unlike MS which only does software, I could see the anti trust authorities forcing Apple to open Mac OS to all computer makers and their by they'd lose the tight integration that make them so great.

[backtomac]

As an APPL shareholder I eagerly look forward to this quarter's numbers. They may blow the estimates completely away.

[simX]

Originally Posted by riversky

That is exactly why they shouldn't get too big. They build the software OS AND the hardware. They would face more scrutiny because unlike MS which only does software, I could see the anti trust authorities forcing Apple to open Mac OS to all computer makers and their by they'd lose the tight integration that make them so great.

Um, no.

Anti-trust proceedings were initiated against Microsoft not because they were a monopoly, but because they abused their monopoly position to strong-arm other competitors into not installing competitors' operating system on their hardware.

This doesn't even apply to Apple, though, because they make the hardware and the software. If Apple wants to restrict its operating system to its own hardware, that's entirely within its own power. There's nothing wrong with that, even if they are in the monopoly position. They're limiting themselves, they're not forcing restrictions on other companies through their dominant position.

Wow, 8% U.S. market share, though. That's pretty impressive if the figures are accurate. Does anyone have a graph of previous market share estimates by Gartner and IDC?

[tacojohn]

I guess I don't really care what Apple's total market share as long as they keep doing what they've been doing...

[noirdesir]

Originally Posted by macFanDave

Many people believe that you are not compelled to use the Mac because Windows is a viable alternative (even though it really isn't).

If you are able to say this in public with a straight face, you are definitely on board.

[Ireland]

The U.S. is only part of the picture guys. Apple has zero stores in most countries, which equates to much smaller mind share in those respective populaces. The iPhone and all the new iPods are a huge factor in that mind share, if not the only factor in some places. Apple needs to seriously address the issues they have in Europe, Asia and Australia in this regard.

First things first, get on with opening a heck of a lot more stores. Seriously, it's ridiculous at this stage. Starbucks opens 7 new stores every day, Apple doesn't even open 7 stores a week. I know there's no comparison being that Apple's stores likely cost a lot more, and are bigger physically, but there's too many countries with zero Apple stores, and even a continent without one.

How'd you like them Apples?

[cameronj]

Originally Posted by Ireland

The U.S. is only part of the picture guys. Apple has zero stores in most countries, which equates to much smaller mind share in those respective populaces. The iPhone and all the new iPods are a huge factor in that mind share, if not the only factor in some places. Apple needs to seriously address the issues they have in Europe, Asia and Australia in this regard.

First things first, get on with opening a heck of a lot more stores. Seriously, it's ridiculous at this stage. Starbucks opens 7 new stores every day, Apple doesn't even open 7 stores a week. I know there's no comparison being that Apple's stores likely cost a lot more, and are bigger physically, but there's too many countries with zero Apple stores, and even a continent without one.

How'd you like them Apples?

Boy am I glad you're not running Apple (assuming your post was not a joke, I guess).

As a shareholder I want Apple to maintain high levels of profit growth, and opening a store a day, or even one per week, would NOT help that goal.

[Ireland]

Originally Posted by cameronj

Boy am I glad you're not running Apple (assuming your post was not a joke, I guess).

As a shareholder I want Apple to maintain high levels of profit growth, and opening a store a day, or even one per week, would NOT help that goal.

Maybe your post was a joke. And hey, you're not the only Apple shareholder round here. What country are you from?

[g5man]

Originally Posted by cameronj

Boy am I glad you're not running Apple (assuming your post was not a joke, I guess).

As a shareholder I want Apple to maintain high levels of profit growth, and opening a store a day, or even one per week, would NOT help that goal.

You are missing the point. One of the reasons Apple has enjoyed such a surge in Mac sales is primarily because of their stores which keep growing in the US. If one looks more closely at the numbers, outside of US sales have remained rather flat for the last year going from a low of 39% to a high of 43% and ending at 40% last quarter. If Apple opened up more stores outside of the US they could grow more internationally.

They don't need a store a week, but one a month would be nice, especially in Europe.

[aaarrrgggh]

Originally Posted by g5man

You are missing the point. One of the reasons Apple has enjoyed such a surge in Mac sales is primarily because of their stores which keep growing in the US. If one looks more closely at the numbers, outside of US sales have remained rather flat for the last year going from a low of 39% to a high of 43% and ending at 40% last quarter. If Apple opened up more stores outside of the US they could grow more internationally.

They don't need a store a week, but one a month would be nice, especially in Europe.

Very true, but they can't just open stores everywhere... it would spread them too thin and put too much real-estate risk on the company.

Right now, in several countries they have pretty darned good partner stores that they seem to have actually put money into. For Thailand, the stores have the look of a smaller Apple store, but are independent. This exposes people to the products, but lacks the refinement of a true Apple store... not to mention warranty repairs.

It has to be a long-term plan, but I would hope that any city with at least 5M people would have a store...

[Walter Slocombe]

Originally Posted by Ireland

Maybe your post was a joke. And hey, you're not the only Apple shareholder round here. What country are you from?

With the world wide property market slowing down, and more than likely going into recession, it will start to become a good time for Apple to buy up land and plant stores, although I prefer the localised "Shops" so you may get your wish but Australia HAS Apple stores and theres what? a population of 30/40 million spread out over VAST distances, whereas the 7-8 million in Ireland are spread out over a tiny little dot of land, IMO Apple should plant at LEAST one store (or Shop) in the place, don't you?

[mark2005]

Originally Posted by AppleInsider

Apple's US-based Mac shipments during the quarter total 1,338,000, compared just 975,000 during the same time last year.

Meanwhile, rival market research firm IDC also released its preliminary third quarter PC share results around the same time as Gartner. It claims, however, that Apple's U.S. shipments totaled just 1,130,000 in Q3 for an overall share to 6.3 percent -- representing growth of just 15.9 percent.

Well, someone's counting scheme is way way off. We'll know on Oct 22 who that is ... unless we get a mea culpa before then.

[kim kap sol]

In due time, Apple will spread to Europe and Australia...Asia would be a tough market though.

[cygnusrk727]

I've worked for my present company for the last 10 years. I've gone from seeing the MIS personal cussing the Macs in my deparment and vowing to get rid of them, to watching those same PC weenies years later stroll around at lunch with their iPods. One of them owns like nine different iPods I heard. Oh, it's a great time to be an Apple fan. Here's hoping the market share continues to climb......Next stop. The business market.

[hankx32]

I became a shareholder only after being a Mac owner. I hated computers before I was introduced to a sexy little iBook 5 years ago. Sure you can discover Macs at little third party retail stores, or Best Buy or where-ever, but in those environments they are sitting amongst a bunch of other crappy Dell's and stuff, it's like guilt by association.
Only when you wander upon a shiny modern glass Apple Store are you introduced correctly. The stores are like little pieces of jewelry, sparkling and curious. Apple Stores, I think are key to driving sales and higher market share.

My cousin Brian, 13 years old, having been turned onto Apple by me a couple years ago loves to just go to the store and look around. The other day he said, "I went to the Apple Store with my mom today." I said, "oh yeah?"
In a very serious sort of sigh he says, "I just love everything in that store..." I laughed and said in agreement, "Yeah, it's pretty cool isn't it."

[anantksundaram]

I would prefer that Apple continue its successful combination of high price/smaller volume strategy + envelope-pushing, and stay under 10% share. It has worked brilliantly for nearly a decade, and has created a great deal of value.

I am concerned that, with anything much over 10%, two types of pressure start to creep in: the pressure to price lower and lower (with resultant quality implications, which we are already witnessing), and the attention of malware providers.

Market share (beyond a point) does not equal value.

[Ireland]

Originally Posted by kim kap sol

In due time, Apple will spread to Europe and Australia...

In overdue time.

[desarc]

apple isn't the little guy - 20,000 employees a year ago. i'm guessing 25k+ now.

i'm sure at least a few of those guys are analyzing when and where to open apple stores, in europe, asia, international space stations, redmond, WA, dubai, etc. etc. etc.. there are probably a dozen more working out lease deals and going over tenant fit-out guidelines for stores being designed in typical apple secrecy. they're not going to expand too far too fast [krispy kreme, anyone?].

i love almost everything designed by apple, hardware and software. i love my iphone, macbook and my pro mac at work, but i'm more interested in seeing where ELSE apple can grow. if it weren't for the iPod, apple would be in the same place it was 6 years ago. i hope they continue to expand to other consumer electronics. how would apple approach the digital camera or camcorder? car stereo/navigation? video game systems? a REAL appleTV? what's on the boards in the ive-ory tower?

think different about where to think different.

[gimpymw]

Originally Posted by macFanDave

I would agree that the sweet spot of market share for Macs would be 15-20%.

Apple has monopolistic practices, but we Mac users actually appreciate them and benefit from them. These practices aren't illegal, because the Mac is a minority platform. Many people believe that you are not compelled to use the Mac because Windows is a viable alternative (even though it really isn't )

If the Mac were to achieve a much higher market share, they may face anti-trust actions.

On the other hand, that 15-20% of the market would pressurize developers like, say, Adobe to keep the release of apps and upgrades reasonably similar for the Mac and Windows.

Also, at that market share, the opportunities for Mac-only developers may make the pursuit more feasible.

It's a nice goal to aim at and I am happy that Apple is approaching it (as opposed to receding from it.)

Hmmm...

I don't agree with your point regarding Apple and it's "monopolistic ways". The only way Apple could be a monopoly and face possible anti-trust action is if Apple increased it's market share to 100% for computer hardware.

Apple doesn't licence its hardware to other hardware manufacturers and it develops its own OS software which it doesn't force on those previously mentioned hardware manufacturers. Just because Apple exercises tight control over its own hardware and software does not mean Apple has "monopolistic ways".

Plus, there would still be plenty of choice out there even if Apple's market share doubled or tripled.

[gimpymw]

Originally Posted by Ireland

The U.S. is only part of the picture guys. Apple has zero stores in most countries, which equates to much smaller mind share in those respective populaces. The iPhone and all the new iPods are a huge factor in that mind share, if not the only factor in some places. Apple needs to seriously address the issues they have in Europe, Asia and Australia in this regard.

First things first, get on with opening a heck of a lot more stores. Seriously, it's ridiculous at this stage. Starbucks opens 7 new stores every day, Apple doesn't even open 7 stores a week. I know there's no comparison being that Apple's stores likely cost a lot more, and are bigger physically, but there's too many countries with zero Apple stores, and even a continent without one.

How'd you like them Apples?

I agree with on your point regarding Apple's Marketing outside of North America. Things I've read and heard seem to point that Apple's marketing of it's computer products revolves around North America, specifically the US, and is somewhat non-existant in the rest of the world (ie. Europe and Asia both of which are dominated by PC hardware). The iPhone may pave the way to exposing Apple's other products to these markets if it sells well in Europe and Asia.

[cameronj]

Originally Posted by g5man

You are missing the point. One of the reasons Apple has enjoyed such a surge in Mac sales is primarily because of their stores which keep growing in the US. If one looks more closely at the numbers, outside of US sales have remained rather flat for the last year going from a low of 39% to a high of 43% and ending at 40% last quarter. If Apple opened up more stores outside of the US they could grow more internationally.

They don't need a store a week, but one a month would be nice, especially in Europe.

The reason that the stores have been so profitable is that they build them in locations where consumers have a TON of extra cash and want the cache that comes from spending a lot of money on a consumer good. Build 10 Apple stores in Northern Cal and that's great. Build 10 in Arkansas and see what happens.

Apple thrives on the "high hanging fruit" - Apple stores in poorer areas (and by poorer I don't mean poor - I mean anywhere near average wealth as compared to the USA standard) will do badly. Which is why they don't build them there.

To start building the kind of numbers some people apparently want, they will have to go in worse and worse locations, and the results will suffer.

[jonparadise]

The UK seems to be pretty high up on Apples 'outside the US' agenda.

We get things pretty well simultaneously, seem to be the first to get new products after the US (like the iPhone) and old Jobs makes quite a few trips over here a year.

However, I also live in Australia now and again, and it seems to be the reverse situation there. Only now is an Apple Retail store finally making an appearance. Which is a shame as the Mac is quite popular.

I guess the leading factor is population per square mile. The UK is pretty densely populated and is also one of the countries where computer and software companies feel they can charge a 'premium'.

[Takeo]

They have VERY few stores in Canada too. Just four stores in fact... and of course... three of those are in Toronto. I'd love to see stores in some of the smaller cities.

[kim kap sol]

Originally Posted by anantksundaram

Market share (beyond a point) does not equal value.

Very true. I hope Apple will be able to detect that turning point and try to stay right below it. Ideally, the market share has to be high enough to entice some important developers. But low enough to keep away malware developers. It has to be slow enough to allow Apple to keep the level of quality we all know and love but high enough to allow Apple to rake in enough cash to innovate more.

[backtomac]

Originally Posted by kim kap sol

In due time, Apple will spread to Europe and Australia...Asia would be a tough market though.

Why would Asia be tough? Is it due to Apple's lack of a ultra portable computer or is for other reasons?

[kim kap sol]

Originally Posted by backtomac

Why would Asia be tough? Is it due to Apple's lack of a ultra portable computer or is for other reasons?

Well, with the exception of Japan and perhaps Korea, I don't think the general standard of living permits asians to own something as expensive as an iPhone or a Mac.

[backtomac]

Originally Posted by kim kap sol

Well, with the exception of Japan and perhaps Korea, I don't think the general standard of living permits asians to own something as expensive as an iPhone or a Mac.

Yeah, didn't consider that. Was only thinking of Japan.

I think an ultra portable would sell well in Japan though.

[brianus]

Could someone give an idea of which countries they think Apple isn't doing enough business in (I assume we're just talking about countries for which OS X is localized, of course..)

[Ireland]

Originally Posted by brianus

Could someone give an idea of which countries they think Apple isn't doing enough business in..

I don't have all day.

[britwithgoodteeth]

Originally Posted by mdcat

A longtime friend wants a new computer because her present one is "slow". Rather than tell her that it's just probably Windows gunk (or possibly spyware/adware), I encouraged her to go to the nearby Apple Store and "kick the tires".

You're quite a "friend".

[wordwise]

Originally Posted by simX

Um, no.



Wow, 8% U.S. market share, though. That's pretty impressive if the figures are accurate. Does anyone have a graph of previous market share estimates by Gartner and IDC?

Even more impressive if you consider that Apple's US share is likely heavy on consumer share, where Windows is weighted with Business share...take out the business share or Windows, and the picture is waaaaay rosier for Apple

[johnnyapple]

What's interesting about the Gartner estimates (which don't agree much with the IDC numbers) is that non Apple PCs grew at 2.6% vs Apple at 37%. If true, it's a very telling story about the health of Vista. For Apple to show that kind of growth in the quarter leading up to an OS upgrade is very impressive.