Mac pricing gives Apple top dollar share in U.S. home PC market

Posted:
in Current Mac Hardware edited January 2014
For the first time ever, Apple is the dollar share leader in the U.S. home PC market, with the Mac taking 29.4 percent of every dollar earned from domestic home computer sales.



Analyst Charlie Wolf with Needham & Company crunched the numbers from Apple's September quarter, and found that Apple's near 30 percent share of dollars spent was ahead of HP, at 20.6 percent, and Dell, at 12.9 percent. Apple achieved the milestone with just 12.2 percent of all unit sales, though that market share was also a record number.



But Wolf's numbers are based on the higher average Mac selling price reported by market research firm IDC. Apple's own average selling price reported for the September quarter was about flat with the previous June quarter.



"However, in an e-mail response, IDC stood by its average selling price estimate," Wolf wrote. "If Apple's average selling price were substituted for IDC's, the Mac's dollar share of the U.S. home market would fall to 20.0%, slightly less than HP's share."



While Apple's market share has inched higher, its dollar share has grown much faster in the home market. This reflects the fact that Apple has shown pricing discipline with the Mac platform, while rival PC makers have aggressively lowered their prices.







Worldwide Mac sales significantly outpaced the home PC market in the September quarter, as Apple's shipments grew 25.3 percent year over year, compared to the market-wide rate of 10.4 percent. Apple has also had strong Mac sales in the business market, growing 66.3 percent last quarter, compared to the market rate of 8.5 percent.



"To put these percentages in perspective, the home market still represented a commanding 63.2% share of total Mac shipments in September while shipments in the business market accounted for just 18.6%," Wolf wrote. "Nonetheless, the second consecutive quarter of stunning growth in the business market could possibly represent the canary in the coalmine."







IDC's figures also show that Apple grew an impressive 503.9 percent year over year in government computer sales, versus the market average of 8.3 percent. And Apple grew 201.7 percent with very large businesses, while the market grew 26 percent.
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Comments

  • Reply 1 of 75
    MacProMacPro Posts: 19,450member
    Every barrier is coming down for Apple. Those government sales are very impressive too. However, what the heck is up with education ... is this poor performance by Apple education sales people or a concerted effort for mind share by some Machiavellian MS push?



    BTW I think the "canary in the coalmine," is wearing a MS tee shirt and is flat on its back.
  • Reply 2 of 75
    Quote:
    Originally Posted by digitalclips View Post


    However, what the heck is up with education ...



    I also find this quite perplexing, and would love to know the answer here.
  • Reply 3 of 75
    Quote:
    Originally Posted by digitalclips View Post


    Every barrier is coming down for Apple. Those government sales are very impressive too. However, what the heck is up with education ... is this poor performance by Apple education sales people or a concerted effort for mind share by some Machiavellian MS push?



    BTW I think the "canary in the coalmine," is wearing a MS tee shirt and is flat on its back.



    Education has been cut back across the board, for the entire US, state by state. That's the reason.
  • Reply 4 of 75
    As a Marketeer myself I always felt dollar share is much more important than unit share.
  • Reply 5 of 75
    Goes to show how much more expensive it is to go Mac 'eh?



    Good for Apple's bottom line though!
  • Reply 6 of 75
    Quote:

    "Nonetheless, the second consecutive quarter of stunning growth in the business market could possibly represent the canary in the coalmine."



    Canaries were put in coal mines to give early warning of impending disaster (because they would die before miners if the air went bad). It's as though Mr. Wolf is a Japanese marketer, throwing out English phrases because they sound catchy with no regard to their actual meaning.
  • Reply 7 of 75
    certainly not the first time ever - Apple was the market leader pretty much from the day they became a company until sometime after the IBM PC was released.
  • Reply 8 of 75
    wonderwonder Posts: 229member
    Quote:
    Originally Posted by Firefly7475 View Post


    Goes to show how much more expensive it is to go Mac 'eh?



    Good for Apple's bottom line though!



    Is it more expensive in the long run?



    No virus software to update every year - big saving.

    Apple machines have a longer life than PCs, and retain more of their resale value.

    Less support needed, so cheaper for businesses, schools, etc.



    The overall cost of owning a Mac has often been shown to be less than that of a PC.



    Also you need to look at VALUE, not PRICE, there is a difference.

    What value do you add for best industrial design, ease of use, OSX, quality, etc.
  • Reply 9 of 75
    Hummm... So with still a low market share, yet making more money than any other company in the computer business, and billions of dollars in the bank, don't you think it is long past time for Apple to lower their computer prices?
  • Reply 10 of 75
    Quote:
    Originally Posted by justbobf View Post


    Hummm... So with still a low market share, yet making more money than any other company in the computer business, and billions of dollars in the bank, don't you think it is long past time for Apple to lower their computer prices?



    Unfortunately no. The street is worried about their profit margins going down ... which has happened this quarter.
  • Reply 11 of 75
    Quote:
    Originally Posted by Firefly7475 View Post


    Goes to show how much more expensive it is to go Mac 'eh?



    And what significantly higher value they provide.
  • Reply 12 of 75
    Quote:
    Originally Posted by cincytee View Post


    Canaries were put in coal mines to give early warning of impending disaster (because they would die before miners if the air went bad). It's as though Mr. Wolf is a Japanese marketer, throwing out English phrases because they sound catchy with no regard to their actual meaning.



    It's not the canary for Apple, it's the canary for MS.
  • Reply 13 of 75
    Quote:
    Originally Posted by justbobf View Post


    Hummm... So with still a low market share, yet making more money than any other company in the computer business, and billions of dollars in the bank, don't you think it is long past time for Apple to lower their computer prices?



    Why do people care about market share?? As long as the platform attracts developers it big enough. After that profit maximization is the goal. To do that you have to provide value. The market has spoken and Apple's dollar share show they've satisfied the market, well.



    On the developer side the re-entry of Autodesk on the platform show they can attract developers as well.



    Market share far less important to a business than profits. Its only really important when the former impacts the latter. Not an issue for Apple at the moment.
  • Reply 14 of 75
    piotpiot Posts: 1,346member
    Quote:
    Originally Posted by justbobf View Post


    Hummm... So with still a low market share, yet making more money than any other company in the computer business, and billions of dollars in the bank, don't you think it is long past time for Apple to lower their computer prices?



    Are you earning too much? Perhaps you should take a cut in salary.
  • Reply 15 of 75
    z3r0z3r0 Posts: 238member
    Simple Apple isn't focusing on Education any more.



    For example Apple just killed the Xserve. This will have a negative impact in Education. iTunes U, Podcast Producer, internal video on demand systems built on Quicktime Streaming Server and Final Cut Server, Open Directory and the management of a desktop Mac's in computer labs...



    It will hurt Apple in the end.



    Quote:
    Originally Posted by monstrosity View Post


    I also find this quite perplexing, and would love to know the answer here.



  • Reply 16 of 75
    MacProMacPro Posts: 19,450member
    Quote:
    Originally Posted by mdriftmeyer View Post


    Education has been cut back across the board, for the entire US, state by state. That's the reason.



    I thought these numbers were market share. Cut backs would cut back across all brands and not produce these result unless i am reading it incorrectly.
  • Reply 17 of 75
    MacProMacPro Posts: 19,450member
    Quote:
    Originally Posted by z3r0 View Post


    Simple Apple isn't focusing on Education any more.



    For example Apple just killed the Xserve. This will have a negative impact in Education. iTunes U, Podcast Producer, internal video on demand systems built on Quicktime Streaming Server and Final Cut Server, Open Directory and the management of a desktop Mac's in computer labs...



    It will hurt Apple in the end.



    If you are correct then yes it will hurt in the long term. Apple should have a massive push into education, heck they can afford it.
  • Reply 18 of 75
    Quote:
    Originally Posted by digitalclips View Post


    Every barrier is coming down for Apple. Those government sales are very impressive too. However, what the heck is up with education ... is this poor performance by Apple education sales people or a concerted effort for mind share by some Machiavellian MS push?



    BTW I think the "canary in the coalmine," is wearing a MS tee shirt and is flat on its back.



    My GF works in Education K-12 and just hates the dominance of PC's. She said it is so frustrating going through Windows programs with kids and teachers and every few minutes she has to answer a cryptic question on a pop-up screen...or the program worked yesterday, but now it is doing something completely different.



    I think it is idiot administrators buying PC's based solely on price...and in doing so are holding our kids back....when the "Kids" get older and can make a choice for themselves, they choose Apple....just look at the use of Apple in Universities!



    She loves our Macs at home!



    LOL
  • Reply 19 of 75
    MacProMacPro Posts: 19,450member
    Quote:
    Originally Posted by alandail View Post


    certainly not the first time ever - Apple was the market leader pretty much from the day they became a company until sometime after the IBM PC was released.



    I remember those days well ... sigh ...
  • Reply 20 of 75
    MacProMacPro Posts: 19,450member
    Quote:
    Originally Posted by Wonder View Post


    Is it more expensive in the long run?



    No virus software to update every year - big saving.

    Apple machines have a longer life than PCs, and retain more of their resale value.

    Less support needed, so cheaper for businesses, schools, etc.



    The overall cost of owning a Mac has often been shown to be less than that of a PC.



    Also you need to look at VALUE, not PRICE, there is a difference.

    What value do you add for best industrial design, ease of use, OSX, quality, etc.



    All true and don't forget the resell value too. A three year old PC is worthless, heck Goodwill reject them. A three year old Mac can be sold for top dollar. Mine are always snapped up at staggeringly high prices. Recently I sold a three year old Mac Pro system for 75% of my purchase price.
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