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Apple's pricing discipline gives Mac 10.5% market dollar share

post #1 of 77
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Though Apple carries just 5 percent of the total worldwide home PC market, the Mac commanded 10.5 percent of the market's dollar share during the holiday buying season.

As most other PC makers are in a race to the bottom in terms of price, Apple's pricing discipline, analyst Charlie Wolf with Needham & Company said Wednesday, has been a tremendous asset. Apple's dollar share of the worldwide consumer PC market has continued to grow since early 2004, when it was just 3 percent.

The Mac's dollar share in the U.S. home market is even more impressive, at about 20 percent, while it unit share sits around 10 percent. And in the European home market, Apple has about 6.4 percent of sales, but 14.2 percent of revenue.

One strong country for Apple has been France, where this week it was revealed that the Mac broke into the top 5 in terms of overall holiday sales. Apple saw 43.5 percent year-over-year growth in sales to sell 182,000 machines.

Wolf's note to investors on Wednesday morning gave an in-depth breakdown of Mac sales during the company's December quarter. The Cupertino, Calif., company's first fiscal quarter of 2010 proved to be its best ever, with sales of 3.36 million Macs helping to propel its revenue more than 50 percent to $3.38 billion.



Wolf said that Mac shipments grew 32 percent in December, versus the rest of the PC market seeing a 16.9 percent increase. The December quarter was the second in a row that Apple topped 3 million Mac sales, and holiday sales were 4.5 times higher than they were in the same three-month frame in 2004.

"Apple sold more Macs in the December quarter than it did in calendar 2003 and almost as many as it did in 2004," Wolf wrote. "The most popular explanation for the surge in Mac sales has been the iPod halo effect. The iPod was the first Apple product Windows users ever purchased. And the iPod so delighted them that a meaningful percentage switched to the Mac as a result."

Another major contributor to switchers: Apple's retail stores. Wolf said when customers enter an Apple store to buy an iPod or an iPhone "could not fail to notice and appreciate the free support infrastructure Apple bundles into the price of Macs." Apple has noted for some time that about half of all in-store Mac sales come from Windows switchers.

For Apple, the momentum looks to continue. January Mac sales were estimated to have grown 36 percent, putting them on pace for 2.8 million for the quarter. A forthcoming refresh of Apple's MacBook Pro line is expected to help boost sales.



Wolf also noted that Apple's share of the U.S. education market is on the rebound, with about a 20 percent market share last quarter - and nearly a 40 percent dollar share. Wolf sees the forthcoming iPad as having the potential to replace low-cost PCs in both secondary and higher education markets.

"It is not difficult to imagine classrooms where the iPad takes center stage, capturing a significant percentage of the school market in the process," Wolf said.
post #2 of 77
The day that the Mac worldwide market share reaches 25%, Windows will be history in three years. The horrible Windows experience is only maintained by inertia and ignorance.
post #3 of 77
So basically what this is saying is Apple purchasers are willing to pay on average more than twice what a PC would cost... even when their laptop line is out of date and includes a cpu that existed 3 years ago. Gotcha.
post #4 of 77
What is really important is to not cross the border. If you claim 10 per cent of the market, nobody actually cares that you fail to deliver some shitty iMacs. When it's 85, everybody whines.

We mean Apple no harm.

People are lovers, basically. -- Engadget livebloggers at the iPad mini event.

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We mean Apple no harm.

People are lovers, basically. -- Engadget livebloggers at the iPad mini event.

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post #5 of 77
For the price of a mac, you can buy 3 PCs - Well that was an easier way to tell the story. Now gather 'round for some flavor-aid children.
Gather around everybody!
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Gather around everybody!
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post #6 of 77
I, for one, am very glad that every dollar I give to Apple contains more added profits than other brands.

I like to see Apple's cash reserves go up and up! Every time I buy an Apple product, it does my heart good to know that its owners are becoming richer than if I had saved the money for myself via buying an equivalent, but cheaper product.

That is what Allows Apple to improve my life! Way to go, Apple!
post #7 of 77
Quote:
Originally Posted by zunx View Post

The day that the Mac worldwide market share reaches 25%, Windows will be history in three years. The horrible Windows experience is only maintained by inertia and ignorance.

Win7 is fine. According to Mossberg, it is basically as good as OS X.
post #8 of 77
Quote:
Originally Posted by iGenius View Post

Win7 is fine. According to Mossberg, it is basically as good as OS X.

i will choose not to believe mossberg on that particular one
post #9 of 77
In Switzerland, Apple is even number three:
http://www.macnews.de/news/14591/platz-drei-fur-apple/
(And that refers to units of computers.)
post #10 of 77
It boils down to, Apple could lower prices and, that 5% would rise while that 10% would naturally decrease, or they could do nothing, and it will continue as is.

Either way, they are raking in a lot of cash. Sounds Good. I just wish they wouldn't fuel their own stock drops with PR stunts like the slut apps fiasco.
post #11 of 77
Quote:
Originally Posted by zunx View Post

The day that the Mac worldwide market share reaches 25%, Windows will be history in three years. The horrible Windows experience is only maintained by inertia and ignorance.

Agree with you about the Windows "experiece" - or rather, ordeal.

I doubt we'll see 25% share, though. Nor do we really need to.
post #12 of 77
Quote:
Originally Posted by gFiz View Post

So basically what this is saying is Apple purchasers are willing to pay on average more than twice what a PC would cost... even when their laptop line is out of date and includes a cpu that existed 3 years ago. Gotcha.

Don't be bitter!
Apple makes software that doesn't need 16GB of RAM and biggest video card there is, just to run its OS.
Apple had me at scrolling
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post #13 of 77
Quote:
Originally Posted by iGenius View Post

Win7 is fine. According to Mossberg, it is basically as good as OS X.

Except it isn't. Which is what Mossberg said.

But I suppose a "fine" Windows is alright for most users, especially after Vista.
post #14 of 77
Quote:
Originally Posted by iVlad View Post

Don't be bitter!
Apple makes software that doesn't need 16GB of RAM and biggest video card there is, just to run its OS.

only bitter that the new mbp's aren't out yet

<----stupid apple lover willing to pay twice as much for the same hardware


p.s. what OS are you talking about??
post #15 of 77
Quote:
Originally Posted by Father View Post

For the price of a mac, you can buy 3 PCs - Well that was an easier way to tell the story. Now gather 'round for some flavor-aid children.


For the price of Windows's OS you can buy 3 of Apples.
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post #16 of 77
Quote:
Originally Posted by Quadra 610 View Post

Except it isn't. Which is what Mossberg said.

But I suppose a "fine" Windows is alright for most users, especially after Vista.

What he actually said was:

""In recent years, I, like many other reviewers, have argued that Apples Mac OS X operating system is much better than Windows," he said. "Thats no longer true. I still give the Mac OS a slight edge because it has a much easier and cheaper upgrade path; more built-in software programs; and far less vulnerability to viruses and other malicious software, which are overwhelmingly built to run on Windows."
post #17 of 77
Quote:
Originally Posted by gFiz View Post

only bitter that the new mbp's aren't out yet

<----stupid apple lover willing to pay twice as much for the same hardware


p.s. what OS are you talking about??

Same hardware? Hmm yeah sure. It's your option to buy cheap plastic notebook that will run dry in two years.

What other OS are you talking about?
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post #18 of 77
Quote:
Originally Posted by Leithal View Post

What he actually said was:

""In recent years, I, like many other reviewers, have argued that Apples Mac OS X operating system is much better than Windows," he said. "Thats no longer true. I still give the Mac OS a slight edge because it has a much easier and cheaper upgrade path; more built-in software programs; and far less vulnerability to viruses and other malicious software, which are overwhelmingly built to run on Windows."

Yes because a 50 year old man knows what young people are doing on their computers.
Windows run OK now because they keep mimicking every bit of free code from apple.
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post #19 of 77
Quote:
Originally Posted by doyourownthing View Post

i will choose not to believe mossberg on that particular one

Try it for yourself.
post #20 of 77
Quote:
Originally Posted by iVlad View Post

Yes because a 50 year old man knows what young people are doing on their computers.
Windows run OK now because they keep mimicking every bit of free code from apple.

That's a rather flippant remark, but it isn't exactly a lie. Not sure about what "free code" that would be, though.

http://thenextweb.com/2009/11/11/mic...-copied-apple/

http://www.osnews.com/story/22480/Mi..._Look-and-Feel
post #21 of 77
Quote:
Originally Posted by iVlad View Post

Yes because a 50 year old man knows what young people are doing on their computers.
Windows run OK now because they keep mimicking every bit of free code from apple.

I agree. I was just clarifying the op's quote.
post #22 of 77
Quote:
Originally Posted by Quadra 610 View Post


But I suppose a "fine" Windows is alright for most users, especially after Vista.

I never once used Vista. Win7 works just fine. The OS is unimportant if it just works.
post #23 of 77
Quote:
Originally Posted by iVlad View Post

Same hardware? Hmm yeah sure. It's your option to buy cheap plastic notebook that will run dry in two years.

What other OS are you talking about?

I make it a point never to get into a Mac/Windows debate with anyone who couldn't resist a "i"Handle when creating a forum ID. You're right, every PC out there is made cheaply and inferior to all Apple's, and it takes 16GB of ram and the top of the line vdeo card to run Windows 7.
post #24 of 77
Quote:
Originally Posted by gFiz View Post

So basically what this is saying is Apple purchasers are willing to pay on average more than twice what a PC would cost... even when their laptop line is out of date and includes a cpu that existed 3 years ago. Gotcha.

I'm still waiting for the thread that states Apple has the highest gross profit for its computers. Wonder if we'll ever see it? \
post #25 of 77
Quote:
Originally Posted by Quadra 610 View Post

Except it isn't. Which is what Mossberg said.

But I suppose a "fine" Windows is alright for most users, especially after Vista.

"fine" still for 90% on worldwide consumers. You'd think they'd change after Vista. Must be why Apple's only hope to gain market is to lock you into a chokehold with iTunes via its iPhone, ATV and now iPad.
post #26 of 77
Quote:
Originally Posted by TEKSTUD View Post

"fine" still for 90% on worldwide consumers. You'd think they'd change after Vista. Must be why Apple's only hope to gain market is to lock you into a chokehold with iTunes via its iPhone, ATV and now iPad.

Tek, not everyone can afford a Mac. Apple's entry fee (apart from the Mini) is at least $1000.

The market is flooded with cheap netbooks and similar junkware. PCs in the midrange are . . . PCs in the midrange. Users simply make do with that.

Apple isn't after marketshare as far as Macs are concerned. This is evident from the the segment of the market (the Premium end) in which they choose to operate. And they've made it very clear they don't intend to compete in the mid to low range. If Apple was out to dominate the market - thus get involved in a race to the bottom by producing garbage (and a lot of it) at some point, they wouldn't lock themselves into the Premium end. There is a body of opinion out there that Apple might even do well in the midrange, but regardless, they've chosen not to get involved.

Macs are the ideal. Not everyone can buy into the experience, however. And a lot of users simply don't care what OS they're using nor the hardware it runs on. Not much you can do about that.
post #27 of 77
Quote:
Originally Posted by iGenius View Post

Win7 is fine. According to Mossberg, it is basically as good as OS X.

it's fine...until you try to transfer, edit and email a video from your phone or camera! Or connect to a new router, or any of a multiplicity of tasks!

I look at the current line of Apple products and they are superior in every way to anything the other manufacturers are producing...whether it's OS, phones, laptops, desktops, etc.

You get what you pay for....
post #28 of 77
Quote:
Originally Posted by extremeskater View Post

You are correct that many users don't care about what OS they use or what hardware its on, all they care about is something that gets them on facebook and if that something only costs 399.00 even better.

... and Steve listened to you and built the iPad.
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post #29 of 77
Quote:
Originally Posted by iVlad View Post

Yes because a 50 year old man knows what young people are doing on their computers.
Windows run OK now because they keep mimicking every bit of free code from apple.

Agreed, I read the WSJ everyday and I find he's out of touch!
post #30 of 77
Quote:
Originally Posted by Quadra 610 View Post

Apple isn't after marketshare as far as Macs are concerned. This is evident from the the segment of the market (the Premium end) in which they choose to operate. And they've made it very clear they don't intend to compete in the mid to low range.

I wonder if that has changed.

I noticed that iSteve claimed that the camera was left out of the iTouch in order to hit a price point, and in addition, the price if the 'Pad was one of the things that he hit hardest in his presentation.

They might try to bifurcate the line, offering low-priced gadgets and high-priced computers, or they might be trying to appeal to a broader market across the board. No way to tell yet.

The delayed MBP refresh might or might not be due to value engineering.

Another thought - iSteve made a big deal out of Apple now being a mobile device company. And it in that sphere that they are building devices to a price point.
post #31 of 77
Quote:
Originally Posted by christopher126 View Post

it's fine...until you try to transfer, edit and email a video from your phone or camera! Or connect to a new router, or any of a multiplicity of tasks!

Why do you imagine that any of those things are a problem?
post #32 of 77
Quote:
Originally Posted by iGenius View Post

Why do you imagine that any of those things are a problem?

Please....I gotta go!
post #33 of 77
Quote:
Originally Posted by Father View Post

For the price of a mac, you can buy 3 PCs - Well that was an easier way to tell the story. Now gather 'round for some flavor-aid children.

And you can buy three lemons for the price of one mango, so your point is? Shopping on price only doesn't always get you the best deal. There is a reason "switchers" make up more than half of new Mac customers, they figured their money was better spent avoiding a machine that is locked into a Microsoft OS. In case you didn't know this you can ever run Win 7 native on intel Macs. There are little excuses left for Windows fanboys (that don't build their own hardware) to diss Macs, Apple offers great looking and speedy hardware, tons of software and options no other brand can match.
post #34 of 77
Quote:
Originally Posted by extremeskater View Post

If Steve is listening to me then I want him to know I would like the iPhone 4.0 OS to have full multitasking and for this to be made available soon after the iPad is released. He can also drop the 16GB model and make the 32GB 499.00.

The article is about how Apple's pricing discipline is returning amazing profits.

Your response is that they should give this strategy up and cut prices on a yet to be released product.

Not everything is about price. They price at a premium level and provide premium service.
If I wanted a cheap portable computer I might look at a netbook - but the teeny, tiny screen and keyboard make my tendonisis flare up just looking at them.
post #35 of 77
Quote:
Originally Posted by extremeskater View Post

If Steve is listening to me then I want him to know I would like the iPhone 4.0 OS to have full multitasking and for this to be made available soon after the iPad is released. He can also drop the 16GB model and make the 32GB 499.00.

You better watch out... you might get what you're asking for... and then I'm guessing that your head would explode...
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post #36 of 77
Quote:
Originally Posted by extremeskater View Post

If Steve is listening to me then I want him to know I would like the iPhone 4.0 OS to have full multitasking and for this to be made available soon after the iPad is released. He can also drop the 16GB model and make the 32GB 499.00.

Maybe not this year though. You will get it next year though And your head will explode at that point... unless you've raised your expectations. At which point, you're pretty unreasonable to ask Apple to improve what they don't even yet offer. But I do bet that they could get the 32GB model down to $499 if they wanted to this year, it just depends on the demand. Sorta like how they dropped the iPhone $100 weeks later after they introduced it in stores.
post #37 of 77
Quote:
Originally Posted by zunx View Post

The day that the Mac worldwide market share reaches 25%, Windows will be history in three years. The horrible Windows experience is only maintained by inertia and ignorance.

i wouldn't call windows 7 a horrible experience by a longshot. i would definitely prefer a mac or other unix-like system but not by much, and the mac hardware premium isn't as worth it as it was when windows xp was the best microsoft had to offer.

i would say that windows 7's window management, some little things like separate application volume control, and the taskbar beat mac os. or things like, why does apple software update take a freaking year to figure out if there are new updates? windows has some more customizable aspects such as in the power options.

i could go on but to be honest my snow leopard experience isn't that much different than windows 7

windows can't be destroyed by an operating system that only works on one high end company's brand. maybe someday the masses will switch to linux, but not mac.

the average pc laptop is sold for a lower price than an ipad. i wouldn't buy one that cheap, but most people just want to browse the web and do other basic tasks, like being able to play flash games and video.
post #38 of 77
Quote:
Originally Posted by iGenius View Post

Quote:
Originally Posted by Quadra 610 View Post

Apple isn't after marketshare as far as Macs are concerned. This is evident from the the segment of the market (the Premium end) in which they choose to operate. And they've made it very clear they don't intend to compete in the mid to low range.

I wonder if that has changed.

No, it has not changed.

Tim Cook, Apple's COO, said so the other day at the Goldman Sachs conference.

"We've always been about making the best product, not having the highest market share or the highest revenue," he said. "And so acquiring a company so our revenue gets larger isn't something that drives us."

post #39 of 77
Quote:
Originally Posted by iGenius View Post

I, for one, am very glad that every dollar I give to Apple contains more added profits than other brands.

I like to see Apple's cash reserves go up and up! Every time I buy an Apple product, it does my heart good to know that its owners are becoming richer than if I had saved the money for myself via buying an equivalent, but cheaper product.

That is what Allows Apple to improve my life! Way to go, Apple!

Heh heh heh. We Apple shareholders love fact that we hold a gun to y'all's heads, and you can't do a darn thing about it!!!!

Your hands are tied. You have no free will. You have no willpower. The logical side of your brain is totally melted and gone and you cannot see any competing products. You are nothing but a useless little bot that will follow instructions from hizzoner Steve-O.

We love it!!
post #40 of 77
Quote:
Originally Posted by kerryb View Post

And you can buy three lemons for the price of one mango, so your point is? Shopping on price only doesn't always get you the best deal. There is a reason "switchers" make up more than half of new Mac customers, they figured their money was better spent avoiding a machine that is locked into a Microsoft OS. In case you didn't know this you can ever run Win 7 native on intel Macs. There are little excuses left for Windows fanboys (that don't build their own hardware) to diss Macs, Apple offers great looking and speedy hardware, tons of software and options no other brand can match.

Thank you. I didn't know any of that. You are very helpful. Tell the man at the iVAT that father said you can have an extra cup of flavor-aid.
Gather around everybody!
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Gather around everybody!
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