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Apple earned $1 out of every $5 US consumers spent on electronics this holiday

post #1 of 26
Thread Starter 
During the busy holiday shopping season, Apple accounted for 19 percent, or nearly one in five, of all U.S. consumer dollars spent on electronics, according to the NPD Group.

Apple's market dominance ensured that the iPhone maker remained the largest consumer electronics brand for the second year in a row, NPD's Retail and Consumer tracking Services and Mobile Phone Track found. With year over year domestic sales growth of 36 percent, Apple's 19 percent of all sales dollars was almost twice as much as the second-place finisher, Hewlett-Packard.

All of the other top five brands beyond Apple actually saw a year over year decrease in revenue in 2011. HP's sales dropped by 3 percent, third-place while Samsung dipped 6 percent, fourth-place Sony slid 21 percent, and Dell, in fifth, lost 17 percent.

Total U.S. technology hardware and consumable sales fell one-half of a percent in 2011, finishing the year at nearly $144 billion. Nearly 60 percent of all sales were represented by the top five categories: PCs, TVs, tablets/e-readers, mobile phones, and video game hardware.

"U.S. hardware sales growth is becoming harder and harder to achieve at the broad industry level," said Stephen Baker, vice president of industry analysis at NPD. "Sales outside of the top five categories fell by 8 percent in 2011 as consumers shifted spending from older technologies to a narrow range of products."

Apple also had a strong showing among retailers, finishing in third only behind first-place Best Buy, and second-place Walmart. Staples and Amazon tied for fourth place, behind Apple, leaving the top five identical to how they were positioned in 2010.




"While in-store sales fell about 2.5 percent in 2011, the growth in online volumes for retailers meant that retail name plates still accounted for well over four of every five dollars spent on CE hardware in the US," Baker said. "Despite their sales strength, retail stores still face serious challenges in 2012 as volumes in the traditional CE categories, which once carried these stores, continue to slide. It shouldn’t be forgotten, however, that a large majority of mobile phones and tablets/e-readers (the two fastest growing CE categories) have mostly been driven through in-store experiences."

The holiday quarter was Apple's best three-month period ever, as the company sold a record 37 million iPhones, along with 15 million iPads and 5.2 million Macs. Total revenue for the period was $46.33 billion, while earnings hit $13.06 billion.

[ View article on AppleInsider ]
post #2 of 26
Interesting datapoint if you dig into these numbers.

Apple had less than 10% of U.S. PC sales. So 2% of U.S. electronics revenues were on Apple PCs if Apple's revenue share matched their market share.

Apple had something like 60% of tablet/ereader sales. So about 6.5% of U.S electronics revenues were Apple iPads if Apple's revenue share matched their market share.

Apple had around 40% of total phone sales. So 3.3% of total revenues were Apple phones if Apple's revenue share matched their market share.

So only about 11.8% of total sales would have been Apple if Apple's revenue share matched the commonly reported market share (that is, if Apple's average selling price were the same as the market average). If Apple had 19%, then Apple's average selling price was 60% higher than the average in the market.

Of course, before we hear all the whining about an "apple tax", it must be pointed out that Apple doesn't participate in the low end of any of these markets and is consistently offering only high end products, so this really doesn't say how much (if any) premium Apple gets over EQUIVALENT products.
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post #3 of 26
Because of apple's genius...I've taken quite a minimalist approach to electronics lately. I'm reluctant to "mess around" with other manufacturer's clunky software and plasticky assembly.

I'm quite happy with the few Apple products I own, iMac, iPad2, iP4, express router. Sold my MacBook to get ipad2.


I know it's personal...but I would rather go without a piece of electronic gear than buy something from an electronics manufacturer other than Apple.

I jumped at the first iPhone, buying two, one for my daughter and myself. $1,200, if memory serves...I deliberately did not buy a stand-alone GPS unit b/c the screen and interfaces were subpar compared to the iPhone. I waited and got TomTom with my ip4.

Sold my Casio exlim camera and reluctant to get a DSLR. iPhone is ok, for now, especially for outdoors. I gave away all my iPods.

I only buy Apple routers. I don't have a TV...waiting for the AppleTV (this is hard as I love to watch Formula One)

I have no stereo...don't like all the wires and cables. Relatively content with iMac for music and iPhone, of course.

I suppose, I have to use Brother for a printer, MFC.

Best

P.S. In 2012 i'll be swapping iMac for 11" MBA, ip4 for ip5, ipad2 for ipad3 (3G) and express for a time capsule...and getting an AppleTV, of course.
post #4 of 26
The beauty of the iPhone is that it is a versatile device. More and more people realize that it easily replaces a camera, a camera recorder, etc , etc ...
post #5 of 26
Quote:
Originally Posted by christopher126 View Post

Because of apple's genius...I've taken quite minimalist approach to electronics lately. I'm reluctant to "mess around" with other manufacturer's clunky software and plasticky assembly.

Good choices -- I too have been spoiled with Apple gear and will not touch junky equipment anymore.

I still have to use a Wintel work laptop -- and man do I loath it.
post #6 of 26
Frankly I'm more amazed that $1 in every $10 of electronics spending was on HP products.
post #7 of 26
Quote:
Originally Posted by Srice View Post

Good choices -- I too have been spoiled with Apple gear and will not touch junky equipment anymore.

I still have to use a Wintel work laptop -- and man do I loath it.

Thx for the kind words...I feel ur pain, Srice! My GF is in the same boat...she loves working on the Apple stuff but is , like u, forced to use an Hp laptop. She absolutey detests it. Thanks to Steve Jobs, she thinks I'm the genius. Which is great for me. Plus, it doesn't hurt, that she is instantly unattracted to guys at work, as soon as they use their BB's, Androids and wintel laptops!

Best regards and hang in there!
post #8 of 26
In line with the Apple love-fest on this thread... I have not owned a television for a year, and will not even consider one until I see what Apple has to offer.

They're not only well-manufactured devices, but Apple "gets" on a deep level what people do and will have use for. The company is in touch with the present and future. Other companies don't seem to possess that philosophy in the conceptualization (or execution) of their products.
post #9 of 26
Quote:
Originally Posted by willb2064 View Post

Frankly I'm more amazed that $1 in every $10 of electronics spending was on HP products.

Well, their printer ink is expensive; that's where a lot of it went, I bet.

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post #10 of 26
Quote:
Originally Posted by christopher126 View Post


I only buy Apple routers. I don't have a TV...waiting for the AppleTV (this is hard as I love to watch Formula One)

You need a TV to experience the awesomeness of the AppleTV. It's really, really cool.

I've been able to survive on Netflix and iTunes for a while now. No cable bill.
post #11 of 26
Since Apple is obviously making a ton more money than the other electronics companies I think they should spend at least 50% of that money to elevate the working conditions of every manufacturing plant in China, regardless if they have business with those companies or not...

Huh??!! What??!!??

Oh... sorry... I was sleeping and having a horrific liberal nightmare!! I have to go wipe the sweat off my forehead...
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post #12 of 26
Quote:
Originally Posted by Pendergast View Post

You need a TV to experience the awesomeness of the AppleTV. It's really, really cool.

I've been able to survive on Netflix and iTunes for a while now. No cable bill.

Oh, absolutely...I did have a large flat screen with the first gen ATV...and u are exactly right. It is awesome. Just having the slide show and music is worth the price of admission. My friends would come over and be mesmerized by it...waiting for the next photo of them, " ken burns-ing" across the screen...I sold them both to upgrade...but the recession kicked me in the n*ts, before I could!
post #13 of 26
Quote:
Originally Posted by Filmantopia View Post

In line with the Apple love-fest on this thread... I have not owned a television for a year, and will not even consider one until I see what Apple has to offer.

They're not only well-manufactured devices, but Apple "gets" on a deep level what people do and will have use for. The company is in touch with the present and future. Other companies don't seem to possess that philosophy in the conceptualization (or execution) of their products.

Well said!
post #14 of 26
Quote:
Originally Posted by island hermit View Post

Since Apple is obviously making a ton more money than the other electronics companies I think they should spend at least 50% of that money to elevate the working conditions of every manufacturing plant in China, regardless if they have business with those companies or not...

Huh??!! What??!!??

Oh... sorry... I was sleeping and having a horrific liberal nightmare!! I have to go wipe the sweat off my forehead...

post #15 of 26
Quote:
Originally Posted by Tallest Skil View Post

Well, their printer ink is expensive; that's where a lot of it went, I bet.

Yep, I'm sure u know , it's more expensive than blood...I get my brother ink online (amazon) for about 10% of retail....5 years now and not one problem! It figures, I do a lot less printing now than I used too...oh well!

Best
post #16 of 26
Quote:
Originally Posted by jragosta View Post

Of course, before we hear all the whining about an "apple tax", it must be pointed out that Apple doesn't participate in the low end of any of these markets and is consistently offering only high end products, so this really doesn't say how much (if any) premium Apple gets over EQUIVALENT products.

Exactly. The aspect of the numbers worth considering is margins and the traditional business model. Margins on TVs have become very small, yet look at the sheer number of TVs sold this past holiday season. If Apple gets into that game with a real Apple TV (in other words, a television, not the current aTV content box connected to a television), they'll do it the Apple way, by controlling the supply chain and getting a level of profit per television that other TV makers simply can't. And, so long as Apple can create a better way to find content to watch (which I'm hoping they can) those things will sell very well. I can't even imagine how much more money Apple will end up raking in next year. Or the year after.

These holiday numbers are amazing even before Apple seriously gets into the TV business.

All I can say is wow.
post #17 of 26
Quote:
Apple earned $1 out of every $5 US consumers spent on electronics this holiday

Uh, there's a difference between revenue and earnings...

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post #18 of 26
Quote:
Originally Posted by John.B View Post

Uh, there's a difference between revenue and earnings...

There is also a difference between the financial term "earnings" and the way "earn" was used in the headline.
post #19 of 26
Quote:
During the busy holiday shopping season, Apple accounted for 19 percent, or nearly one in five, of all U.S. consumer dollars spent on electronics, according to the NPD Group.

In my case, that percentage was probably a bit closer to 100%

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post #20 of 26
I can hear it now...

"But Android is winning!

Dammit - why isn't anyone listening?!?"
post #21 of 26
I'm still wondering what the tipping point will be when people stop buying computers running Microsoft operating systems. In what year will 75% of people purchasing laptop computers costing over $899 go with Apple? Will it be in two years? How about five years? By then won't most people have experienced an iPhone or iPad that they or a friend own? That quality experience should be rubbing off on everybody by then.

Do you think Windows 8 will be good enough to thwart that challenge?
post #22 of 26
Quote:
Originally Posted by christopher126 View Post

Because of apple's genius...I've taken quite a minimalist approach to electronics lately. I'm reluctant to "mess around" with other manufacturer's clunky software and plasticky assembly.

I'm quite happy with the few Apple products I own, iMac, iPad2, iP4, express router. Sold my MacBook to get ipad2.

I know it's personal...but I would rather go without a piece of electronic gear than buy something from an electronics manufacturer other than Apple.

I jumped at the first iPhone, buying two, one for my daughter and myself. $1,200, if memory serves...I deliberately did not buy a stand-alone GPS unit b/c the screen and interfaces were subpar compared to the iPhone. I waited and got TomTom with my ip4.

Sold my Casio exlim camera and reluctant to get a DSLR. iPhone is ok, for now, especially for outdoors. I gave away all my iPods.

Likewise.

I bought a Nikon D7000 the other day and the blasted thing didn't have geo-tagging built in. I mean, seriously, a $1300 camera and all those great reviews, and it doesn't have a feature that most point and shoots have had for years? And if you do want it (and don't want to have add locations manually in iPhoto) you have to buy a big clunky attachment with wires hanging off it. Brilliant.

God bless my iPhone 4S.

Considering Steve's comments about industries he would still like to change, the photography industry is utterly ripe for the picking right now.

Right after the TV one...
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post #23 of 26
If they showed profit instead of revenues, it would really be outrageous. I'm guessing Apple had well north of 50% of proits, given that so much of the industry is barely squeaking out a profit. 75% wouldn't surprise me.
post #24 of 26
Quote:
Originally Posted by Smallwheels View Post

In what year will 75% of people purchasing laptop computers costing over $899 go with Apple? Will it be in two years? How about five years?

They already have 95% of the over $999 market, so it should be soon.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #25 of 26
Quote:
Originally Posted by GTR View Post

Considering Steve's comments about industries he would still like to change, the photography industry is utterly ripe for the picking right now.

Right after the TV one...

I agree that the photography industry is ripe for picking. My son is a Canon fanboy. I asked him how many models of SLR Canon make. He didn't know. The answer is nine, with names like 5D, 500D 550D. Nikon is similar. There was a time when I was hankering for an Olympus but I never got my head around E-P1, E-P3, E-PL3. I couldn't even figure out which one I wanted.

The Panasonic TV ranges are nightmare, with names like TX-P42GT30B so, once you've decided what size you want, you have to look at the 6th, 7th digits and beyond to know the model, yet they are all called 'Viera'.

Simplicity is all, so that the consumer can understand the offer and soon know which one to want, so the lust can kick in. I think readable names are hugely preferable to unreadable alpha-numeric strings.

It is amazing how Apple has shown the way by showing how much consumers respond to quality in design and execution, but still their competitors don't seem to get it and so many are soldiering on offering the same plasticky crap in weird product ranges. The Sony-Ericsson site lists 47 phones!
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post #26 of 26
Quote:
Originally Posted by DennyL View Post

I agree that the photography industry is ripe for picking. My son is a Canon fanboy. I asked him how many models of SLR Canon make. He didn't know. The answer is nine, with names like 5D, 500D 550D. Nikon is similar. There was a time when I was hankering for an Olympus but I never got my head around E-P1, E-P3, E-PL3. I couldn't even figure out which one I wanted.

The Panasonic TV ranges are nightmare, with names like TX-P42GT30B so, once you've decided what size you want, you have to look at the 6th, 7th digits and beyond to know the model, yet they are all called 'Viera'.

Simplicity is all, so that the consumer can understand the offer and soon know which one to want, so the lust can kick in. I think readable names are hugely preferable to unreadable alpha-numeric strings.

It is amazing how Apple has shown the way by showing how much consumers respond to quality in design and execution, but still their competitors don't seem to get it and so many are soldiering on offering the same plasticky crap in weird product ranges. The Sony-Ericsson site lists 47 phones!

This was an extremely educational post for me, and I totally agree.
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