Originally Posted by patrickf
Let's face it. Apple's Mac growth has been abysmal. They simply need cheaper machines to capture any marketshare. And maybe they have decided against that.
I've been buying and using Macs for over 20 years and have bought 5 iphones, 3 MacBook Pros, 3 iPads, and an AppleTV in the last two years...
Okay, I just assume Apple has written off most of the PC market. Which is fine. They just won't have much growth. Only so many people are going to pay for their prices and margins.
Tim Cook talks about growth, but will it happen? Will a cheaper laptop kill off iPad sales?
PC's are never going to recapture tablet share. And PC's ARE going to be a smaller and smaller part of total computing device sales going forward. Remember, you can buy a cheap, light keyboard for your iPad if you want one - otherwise, as apps catch up - the need for PC's in every pot is simply going to keep diminishing. As.....
Originally Posted by esummers
23% Y/Y growth with Apple's current market penetration is impressive. Apple doesn't need to undercut to win. With all of the companies getting out of the PC business (or in financial trouble) these days I think they have the winning strategy. IBM and HP are out. Dell and Acer are struggling. Apple doesn't cost that much more yet has an operating system that is attracting switchers. They are building their OS and products in a way that can sustain them as a company.
....handwriting on the wall, and add these facts and figures......
Originally Posted by jragosta
Wow. Just wow.
What planet do you live on?
- Mac market share has roughly doubled in the past 5 years.
- In the market Apple targets (premium machines purchased by people who value quality over price), Apple's market share is huge - some reports say that Apple sells 90% of computers over $1,000.
- Apple makes something like 1/3 of the entire industry's profits
- The market share numbers reported (something like 6% globally and 10-11% in the U.S. are based on volume. If you do market share based on dollars, the numbers are dramatically higher.
- Apple is one of the top 5 vendors in the US and globally. If you include the iPad, they're #1.
So what possible logic would make them want to cut prices significantly to go after the low-end market where they can't make any money?
Well, here's Patrick's take on that:
Originally Posted by patrickf
It might seem that the growth was significant, but double is not much when you were not selling much to begin with. 2-2.5 million Macs a quarter is nothing. Double that is better. So they came out of obscurity to double their growth. Big deal.
I know a lot of people who can't afford a Mac. They want one. They can't afford one, so they buy a PC.
Apple has very high margins. We all know that.
I was not meaning to criticize. Apple does not want greater market share at the loss of high margins. That is plain and simple. Tim Cook said he wants to grow market share. How can you grow market share when you have 90% of the sales of PCs over $1,000? That's pretty maxed out.
Compared to all of the PCs sales, Mac sales are low.
In the end, who really cares? If Apple wants to grow market share, they obviously know how to do it. If they find a way to sell at $700 computer and want to do that, great. If they don't want to do that, fine. Big deal and who cares?
Nothing maxxed out about Apple's share. If you regard iPads and smart phones as the next primary computing devices of choice for an increasing percentage of the general public (as almost all analysts are starting to do now), Apple's both the quality AND price leader (as they are also in the new "ultra/Air" segment - about which more below - and not to mention Apple's growing share of the PC class market itself - both in the US and around the globe). Double-digit in the US is huge for Apple, especially as their users buy more ancillary software and peripherals than PC buyers.
Meanwhile, more and more people are finding they simply don't need a "truck," and iPads are
selling at considerably less than $700. And again competitors are having huge problems competing against both the device and the growing ecosystem. And iOS and the A processor family are only a few iterations from being able to do nearly anything one can do with most non-maxxed out PC's today.
Amazon's likely to carve out a nice segment with their upcoming 7" device - which won't have full touch gestures or a camera and lack a few other niceties. Looks like it should be a nice hit, and they're going to make money by making the device a way to sell more and more goods and services through Amazon. But even that's a long way from being an "iPad Killer."
Originally Posted by Freshmaker
Well said, Patrick.
I'd personally love to get an iMac, but am not willing to buy one when I could get the same specs in a PC for several hundred dollars less. Love my iPad and iPhone though!
Except you can't get the same specs - or even very near them - in any MacBook Air-like machine - one of the few, if not the only rapidly growing segments of the PC market. The iMac as an all-in-one is driving most of the growth in its category, and even there, you'll be hard-pressed to really spec out something as together for much less than the Mac.
Ars Technica had a great article a few days back
about why Win PC manufacturers can't deliver Ultrabooks that beat the Airs in price/specs (let alone build/OS/service/intangibles) - they're all set up to throw lots of changing parts together in wide-open flimsy boxes - not precision manufacture the same machine for a year - and there's no way for them to transition easily (or for some at all before they croak).
Also, if iCloud works as promised (and Apple GETS the web finally), with the growing auto-synchronization between PC/tab/phone/pod/cloud, the synergies should drive relative growth in ALL of these segments.