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Apple's government Mac sales surge 200%, enterprise grows 50%

post #1 of 91
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Apple's Mac sales to enterprise and government customers in the June quarter saw tremendous growth, easily beating competing PC makers in the three-month span.

As noted by analyst Charlie Wolf of Needham & Company Monday, Mac government sales grew 200.8 percent year over year in the June quarter, well beyond the 12.1 percent growth seen by the rest of the PC market.

In addition, the business market grew 49.8 percent during those three months, besting the market-wide 15.7 percent growth in enterprise sales. Apple's best business sales came with very large companies, where Mac shipments improved 103 percent. Large businesses also bought 98.3 percent more Macs than the previous year.

"Whether the June blip was a one-quarter phenomenon or something more enduring should be revealed in future quarters," Wolf wrote.

Home Mac sales were also up 31.4 percent, besting the industrywide 25.2 percent growth. Despite the growth in business sales, the home market remains Apple's most important, accounting for 61.4 percent of all Mac shipments in the June quarter.

Apple beat the market handily in every segment except for education, where the Mac's 14.7 percent year-over-year growth couldn't match the marketwide average of 21.7 percent.

In all, Mac sales grew 31.5 percent year-over-year, ahead of the 20.9 percent growth seen by the entire PC market over 2009.



Wolf also highlighted the fact that Apple's pricing discipline has helped it to maintain a dollar share of the home PC market that is twice its unit share. While Apple had just 4.7 percent of the home PC market in the June quarter, it took 9.7 percent of the market's dollar share.

The numbers are even more impressive, Wolf said, in the European home market, where unit share is just 7 percent, but dollar share is 15.4 percent. The Mac's unit (10 percent) and dollar (20 percent) share remain higher in the U.S., "but Europe is quickly catching up," he said.



Apple sold a record 3.47 million Macs in the June quarter, helping the company's profits rise more than 77 percent. Mac sales grew 33 percent year over year, contributing to $3.25 billion in profit.

Earlier this month, Wolf noted that Mac sales are on pace to hit 14 million in calendar 2010 -- a number more than 50 percent higher than what he had previously forecast for the year. The analyst noted that Apple remains "a small fish in three very large ponds," reflecting on opportunities for growth with the Mac, iPhone and iPad.
post #2 of 91
This is the news I have been waiting a long time for. It's a small start but the graphs are moving in the right direction. Oh, the potential!

But What's up with education? Someone at Apple needs a kick up the butt!
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post #3 of 91
And yet, AAPL still can't break out of the pack. What is it with this wavering around $250? With all this great sales and profitability data why in the world isn't it stretching toward $300? Baffling. Are there that many sheep in Wall Street?

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post #4 of 91
But What's up with education? Someone at Apple needs a kick up the butt![/QUOTE]

I could not agree with you more, This market segment has been Apple's stronghold
for decades and its crucial both in revenue and mindshare. It should be growing at an accellerating pace. There is something not quite clear about this, provided Wolf's numbers are correct
post #5 of 91
Quote:
Originally Posted by SpamSandwich View Post

And yet, AAPL still can't break out of the pack. What is it with this wavering around $250? With all this great sales and profitability data why in the world isn't it stretching toward $300? Baffling. Are there that many sheep in Wall Street?

Agreed, AAPL is so under valued it is amazing.
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post #6 of 91
200% growth is meaningless if we don't know the absolute numbers.
post #7 of 91
Quote:
Originally Posted by Galapagos View Post


I could not agree with you more, This market segment has been Apple's stronghold
for decades and its crucial both in revenue and mindshare. It should be growing at an accellerating pace. There is something not quite clear about this, provided Wolf's numbers are correct

Especially when you consider the massive growth of MacBooks in use by students themselves. It seems very off. I wonder how they define education? Perhaps only direct purchases by educational establishments. The actual use of MacBooks in Education per se is way up by every metric I have seen.
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post #8 of 91
I love the Mac, but it's stuck in the mud and has been for ten years. I don't mind though, keeps them off the radar for viruses and such.

The future for Apple is their crippled walled garden iOS4. Steve Jobs is taking a page from the Bill Gates playbook. Don't make the best product and let the consumer decide. FORCE them into using your products. iPhone and iPad are perfect examples. And the upcoming iTV will run iOS4 for sure. You will do what Steve Jobs wants and you will like it.

It's what customers are accustomed to in a Windows world. But without the porn.
post #9 of 91
Quote:
Originally Posted by Blackintosh View Post

I love the Mac, but it's stuck in the mud and has been for ten years. I don't mind though, keeps them off the radar for viruses and such.

The future for Apple is their crippled walled garden iOS4. Steve Jobs is taking a page from the Bill Gates playbook. Don't make the best product and let the consumer decide. FORCE them into using your products. iPhone and iPad are perfect examples. And the upcoming iTV will run iOS4 for sure. You will do what Steve Jobs wants and you will like it.

It's what customers are accustomed to in a Windows world. But without the porn.

Troll elsewhere will ya!
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post #10 of 91
Percentage growth rates can be misleading. It is better to have the actual numbers that the government purchased since we don't know how many they have been buying. The government might have been only buying one mac per year.
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post #11 of 91
Quote:
Originally Posted by digitalclips View Post

This is the news I have been waiting a long time for. It's a small start but the graphs are moving in the right direction. Oh, the potential!

But What's up with education? Someone at Apple needs a kick up the butt!

Quote:
Originally Posted by Galapagos View Post

I could not agree with you more, This market segment has been Apple's stronghold for decades and its crucial both in revenue and mindshare. It should be growing at an accellerating pace. There is something not quite clear about this, provided Wolf's numbers are correct

Edu is tough because budget constraints always make people think of PCs more often than not. But with the iPad, the educational impact of an Apple product is very, very clear.

Expect a ton of iPad sales to be taken up by edu market over the next several years, as and when Apple is able to make, service and supply them to the whole world.
post #12 of 91
Quote:
Originally Posted by digitalclips View Post

Especially when you consider the massive growth of MacBooks in use by students themselves. It seems very off. I wonder how they define education? Perhaps only direct purchases by educational establishments. The actual use of MacBooks in Education per se is way up by every metric I have seen.

But in comparison to all the edu institutions buying PCs though, Macs still may not be so dominant. Particularly in less funded places where they "need to do e-learning" but can't go Mac because of perceived price/value issues.
post #13 of 91
Quote:
Originally Posted by Blackintosh View Post

I love the Mac, but it's stuck in the mud and has been for ten years. I don't mind though, keeps them off the radar for viruses and such.

The future for Apple is their crippled walled garden iOS4. Steve Jobs is taking a page from the Bill Gates playbook. Don't make the best product and let the consumer decide. FORCE them into using your products. iPhone and iPad are perfect examples. And the upcoming iTV will run iOS4 for sure. You will do what Steve Jobs wants and you will like it.

It's what customers are accustomed to in a Windows world. But without the porn.

Sounds like Techstump operating under yet another pseudonym. \

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post #14 of 91
Quote:
Originally Posted by digitalclips View Post

Troll elsewhere will ya!



Best to ignore them altogether, when you respond, the post will show on those who have chosen to ignore. Thanks
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post #15 of 91
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Originally Posted by tundraboy View Post

200% growth is meaningless if we don't know the absolute numbers.

True. But whatever the actuals, a 200% growth for a mature product in a mature market is impressive.
post #16 of 91
Quote:
Originally Posted by Blackintosh View Post

Don't make the best product

Except they do. By a pretty wide margin, in nearly all the areas in which they compete.

If you're selling your Mac, by all means I'd love to take it off your hands, given that you see it as such a burden.
post #17 of 91
Quote:
Originally Posted by digitalclips View Post

This is the news I have been waiting a long time for. It's a small start but the graphs are moving in the right direction. Oh, the potential!

But What's up with education? Someone at Apple needs a kick up the butt!

I think the "education" numbers are misleading, because student purchases are not going to count in this segment. As institutional "labs" disappear in favor of every student having a laptop, student ownership of laptops, iPads, iPods, and iPhones aren't going to be reflected in the "education" market.

I think there's also the fact that Apple's market share in this segment has historically been high and thus there's less room for growth. If you add in shrinking federal and state assistance to education, there are a lot of schools and universities who are going to buy machines with the lowest up-front cost right now even if it means higher support costs down the road.
post #18 of 91
Quote:
Originally Posted by RichyS View Post

True. But whatever the actuals, a 200% growth for a mature product in a mature market is impressive.

Not really. If you were previously selling 50 units a quarter and start selling 150, you have 200% growth. Far less impressive than selling 1M previously and now selling 3M. % growth is really a generally useless fact when not accompanied by solid figures, just look at the 886% increase for Android over last year. You know, when there were a total of 3 phone models available? Compared with now when there are 87 bajillion Android phones with a new one seemingly very other week.
post #19 of 91
Quote:
Originally Posted by SpamSandwich View Post

And yet, AAPL still can't break out of the pack. What is it with this wavering around $250? With all this great sales and profitability data why in the world isn't it stretching toward $300? Baffling. Are there that many sheep in Wall Street?

The stock market sucks, still down for the calendar year. That's why.
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post #20 of 91
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Originally Posted by SSquirrel View Post

Not really. If you were previously selling 50 units a quarter and start selling 150, you have 200% growth. Far less impressive than selling 1M previously and now selling 3M. % growth is really a generally useless fact when not accompanied by solid figures, just look at the 886% increase for Android over last year. You know, when there were a total of 3 phone models available? Compared with now when there are 87 bajillion Android phones with a new one seemingly very other week.

Hence the caveat of 'mature product in a mature market'.

Android is not a mature product, and one could argue that the smartphone market is not mature either.

The Mac is a mature product, and the Federal Gov haven't just cottoned onto computers. Ergo, I think we can surmise that 200% growth is impressive -- actuals or otherwise.
post #21 of 91
At the government office we're still not allowed to receive a Mac without a special request which is close to impossible to get. Furthermore, they have not incorporated CAC card technology to Macs yet, as far as I know, so secured email cannot be used.

Our IT staff claims that they're working on it, but knowing them, I ain't holdin my breath!!
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post #22 of 91
Quote:
Originally Posted by SpamSandwich View Post

Sounds like Techstump operating under yet another pseudonym. \

Na, Techstump would at least make a rational argument at times, no history of that in the above.
post #23 of 91
Good I wouldn't take a job where I was forced to use a PC or a blackberry for that matter!
post #24 of 91
And as usual, good news reported causes the stock to go down.
post #25 of 91
Quote:
Originally Posted by Blackintosh View Post

You will do what Steve Jobs wants and you will like it.


All that Steve wants in this world is for all of us too be happy. Is that wrong?
post #26 of 91
Quote:
Originally Posted by bloggerblog View Post

At the government office we're still not allowed to receive a Mac without a special request which is close to impossible to get. Furthermore, they have not incorporated CAC card technology to Macs yet, as far as I know, so secured email cannot be used.

Our IT staff claims that they're working on it, but knowing them, I ain't holdin my breath!!

it is true that apple does very little to help with enterprises dealing with macs. it is still a 'me and my machine' mentality with a little bit of os x server thrown in. nothing on the scale of what MS has done for managing the enterprise.
post #27 of 91
Quote:
While Apple had just 4.7 percent of the home PC market in the June quarter, it took 9.7 percent of the market's dollar share. The numbers are even more impressive, Wolf said, in the European home market, where unit share is just 7 percent, but dollar share is 15.4 percent. The Mac's unit (10 percent) and dollar (20 percent) share remain higher in the U.S., "but Europe is quickly catching up," he said.

Looks like we're comparing Red Delicious and Jonagolds here. Apple had 4.7 percent of the home market? That looks like an overall market share. More confusing when this follows: "Europe [at 7 percent] is quickly catching up". Also, if 4.7 percent/9.7 percent are correct, where do Wolfe's parenthetical inserts of 10 percent and 20 percent unit and dollar share for the U.S. come from? Some clarification would be welcome, please.
post #28 of 91
Quote:
Originally Posted by FineTunes View Post



Best to ignore them altogether, when you respond, the post will show on those who have chosen to ignore. Thanks


Thank you for saying this. People need to ignore all the trolls, but especially, they need to ignore the people who respond to people who respond to trolls. Because those kind of people are worse than all the trolls put together!

So thanks again for telling that guy not to respond to trolls because then people just see the response which is worse then the original troll. Thanks.
post #29 of 91
Quote:
Originally Posted by bloggerblog View Post

At the government office we're still not allowed to receive a Mac without a special request which is close to impossible to get. Furthermore, they have not incorporated CAC card technology to Macs yet, as far as I know, so secured email cannot be used.

Our IT staff claims that they're working on it, but knowing them, I ain't holdin my breath!!

if only all of these geniuses were IT staff rather than complaining users!
post #30 of 91
Quote:
Originally Posted by digitalclips View Post

This is the news I have been waiting a long time for. It's a small start but the graphs are moving in the right direction. Oh, the potential! !

There is certainly a lot of potential but we need to remember that Apple already takes 1/3 or all profits from the PC market as is, would find it very hard to match HP's PC marketshare using it's current business model and be an impossible task to be the dominate PC OS with even just 50.0000001% OS marketshare with their current business model of making the OS for their PCs. Even 15% PC marketshare would put them over 50% of all PC profits if they didn't have to alter their business model to do it.

Quote:
But What's up with education? Someone at Apple needs a kick up the butt!

Quote:
Originally Posted by Galapagos View Post

I could not agree with you more, This market segment has been Apple's stronghold
for decades and its crucial both in revenue and mindshare. It should be growing at an accellerating pace. There is something not quite clear about this, provided Wolf's numbers are correct

I think we may need to look at this differenty than in the past. It's no longer a requirement for schools to keep an maintain as many PCs when so many have their own. There are recent reports of college freshman having more Macs than any othe PC brand, as I recall. These machines used in education are surely counted as consumer sales (and rightly so) but we may need to include that as a reason for a decline in education sales... not to mention a recnt recession that could still be affecting education funding. I suppose we need to see if non-Mac PC sales are on the rise or if they too have been reduced to deduce a fairly sound reason for the decline.
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post #31 of 91
[QUOTE=SSquirrel;1700389 just look at the 886% increase for Android over last year. You know, when there were a total of 3 phone models available? .[/QUOTE]


Exactly. These idiots think that 886% is somehow impressive, but the truth is that pretty much nobody uses Android, and that is why it looks so good to see high numbers.

But just like specs, these numbers mean nothing. That is why Apple doesn't release stupid percentage figures because they mean nothing.
post #32 of 91
Quote:
Originally Posted by SendMe View Post

Thank you for saying this. People need to ignore all the trolls, but especially, they need to ignore the people who respond to people who respond to trolls. Because those kind of people are worse than all the trolls put together!

So thanks again for telling that guy not to respond to trolls because then people just see the response which is worse then the original troll. Thanks.

You're welcome!
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post #33 of 91
Quote:
Originally Posted by Galapagos View Post

But What's up with education? Someone at Apple needs a kick up the butt!

I could not agree with you more, This market segment has been Apple's stronghold
for decades and its crucial both in revenue and mindshare. It should be growing at an accellerating pace. There is something not quite clear about this, provided Wolf's numbers are correct[/QUOTE]

Quote:
Originally Posted by digitalclips View Post

Especially when you consider the massive growth of MacBooks in use by students themselves. It seems very off. I wonder how they define education? Perhaps only direct purchases by educational establishments. The actual use of MacBooks in Education per se is way up by every metric I have seen.

I think that these are Mac sales only.

The education sector includes a lot of iPads and iPod Touches, too.

.
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post #34 of 91
Quote:
Originally Posted by digitalclips View Post

Troll elsewhere will ya!

Name one thing I said that isn't true.

Hello to everyone who put me on the ignore list. Ahh hah hah!
post #35 of 91
Looks like they need to pick up their sales to the education market. After all, that is where early impressions are made. Oh, well. I guess budgets are tight and the schools go with the cheapest models.
post #36 of 91
Quote:
Originally Posted by rbonner View Post

Na, Techstump would at least make a rational argument at times, ...

I don't recall that ever happening.
post #37 of 91
Quote:
Originally Posted by SendMe View Post

All that Steve wants in this world is for all of us too be happy. Is that wrong?

No. Just over-rated and convoluted.
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post #38 of 91
Well, it's only a small fish in the PC market, it is pretty equal to other players in phone, and is essentially the only player in the tablet market.

I wonder what the government is using all the macs for. Not to say that this growth is bad, but Macs are on the expensive side, and I hope these are not just for personal use or have windows on them to run government apps (which all seem DOS -like with black screen and green letters).
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post #39 of 91
Quote:
Originally Posted by sheff View Post

Well, it's only a small fish in the PC market, it is pretty equal to other players in phone, and is essentially the only player in the tablet market.

I wonder what the government is using all the macs for. Not to say that this growth is bad, but Macs are on the expensive side, and I hope these are not just for personal use or have windows on them to run government apps (which all seem DOS -like with black screen and green letters).

You also have to consider TCO which may include how long a single unit can be used for over, say, a $400 Dell, the cost of buying or developing additional software, etc. It very well might be the most exonomical option for certai uses. I believe they've been using iPods for many years over much more expensive dedicated translation assistance devices

Also, check out the cost to performance ratio of a Panasonic Toughbook. Now imagine what a US government designed and built PC would cost per unit or taxpayers.
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post #40 of 91
Quote:
Originally Posted by sheff View Post

Well, it's only a small fish in the PC market, it is pretty equal to other players in phone, and is essentially the only player in the tablet market.

I wonder what the government is using all the macs for. Not to say that this growth is bad, but Macs are on the expensive side, and I hope these are not just for personal use or have windows on them to run government apps (which all seem DOS -like with black screen and green letters).

I woud not be surprised if the Macs were used to develop iOS apps -- especially iPad iOS apps.


I've read that iPod Touches are being used as translation devices in Iraq.

I personally have used Jibbigo -- and could easily see the Feds using a similar app for Farsi, Urdu, etc...

... Please speak into the iPhone Mr. Bin Ladin!

We won a $1 million contract in the mid 1980's selling 99 computers and 11 LANS to the US Army Command and Control College at Ft. Leavenworth, KS. (No they were not Macs-- you could not get color displays on a Mac at that time, nor CoBOL, Fortran, etc.)

These were used for officer training, war games, etc.

I can see this same use being done on a Mac Server, Airport Extremes, and iPads for about $64,000 worth of hardware (Retail prices).

I know nothing, here, but I suspect the Feds are gobbling up iPads as fast as Apple can supply them.

There are almost unlimited uses for specialized iPad apps for government -- and they do require an infrastructure of Mac gear to program and support them.


If it is still like it was when we were selling Macs (1984-1989), selling to the governments (Local, State, Federal) was different, but not impossible. There are lots of ways to make single-source, no-bid sales! If you have something that the governments want or need, they will find a way to buy it.

.
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