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

Posted:
in Current Mac Hardware edited January 2014
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.
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Comments

  • Reply 1 of 87
    zunxzunx Posts: 620member
    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.
  • Reply 2 of 87
    gfizgfiz Posts: 32member
    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.
  • Reply 3 of 87
    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.
  • Reply 4 of 87
    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.
  • Reply 5 of 87
    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.



    Are you sure its 25%? Maybe it would just take 24% or maybe they would have to put it to 26% for Microsoft to be doomed. By the way if they got 25% what would the rest of the 75% use?



    This is like saying if Apple ever went back to 2.3% they would go out of business within 3 years. Companies like Apple and Microsoft have been around for so lone neither are going anywhere.
  • Reply 6 of 87
    igeniusigenius Posts: 1,240member
    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!
  • Reply 7 of 87
    igeniusigenius Posts: 1,240member
    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.
  • Reply 8 of 87
    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
  • Reply 9 of 87
    noirdesirnoirdesir Posts: 1,027member
    In Switzerland, Apple is even number three:

    http://www.macnews.de/news/14591/platz-drei-fur-apple/

    (And that refers to units of computers.)
  • Reply 10 of 87
    pmzpmz Posts: 3,433member
    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.
  • Reply 11 of 87
    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.
  • Reply 12 of 87
    ivladivlad Posts: 735member
    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.
  • Reply 13 of 87
    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.
  • Reply 14 of 87
    gfizgfiz Posts: 32member
    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??
  • Reply 15 of 87
    ivladivlad Posts: 735member
    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.
  • Reply 16 of 87
    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 Apple?s Mac OS X operating system is much better than Windows," he said. "That?s 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."
  • Reply 17 of 87
    ivladivlad Posts: 735member
    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?
  • Reply 18 of 87
    ivladivlad Posts: 735member
    Quote:
    Originally Posted by Leithal View Post


    What he actually said was:



    ""In recent years, I, like many other reviewers, have argued that Apple?s Mac OS X operating system is much better than Windows," he said. "That?s 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.
  • Reply 19 of 87
    igeniusigenius Posts: 1,240member
    Quote:
    Originally Posted by doyourownthing View Post


    i will choose not to believe mossberg on that particular one



    Try it for yourself.
  • Reply 20 of 87
    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
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