'Apple will double market share' -Steve Jobs
<a href="http://www.macworld.co.uk/news/top_news_item.cfm?NewsID=4707"; target="_blank">http://www.macworld.co.uk/news/top_news_item.cfm?NewsID=4707</a>;
[quote]
Friday - May 24, 2002
Steve Jobs: 'Apple will double market share'
By Jonny Evans
Apple CEO Steve Jobs made a rare TV appearance, giving an interview to the BBC?s News 24 business news service while in London on Wednesday.
The interview was broadcast last night at around 8:40pm. Jobs seemed energetic as ever, accompanied by Apple?s chief designer, Jonathan Ives.
Long-term Mac industry-watchers could be forgiven for thinking that Jobs stuck to Apple?s script throughout the three-minute segment.
R&D
Looking at the economic malaise around IT, Jobs said: ?We?re trying to innovate our way through this. While other manufacturers cut research and development spending and cut staff, Apple?s still hiring and putting money into R&D.
?We aim to create products that surprise and delight our customers,? he declared.
Apple has created major interest in its products in recent months, Jobs confirmed: ?There are more people interested in switching to Mac than ever before,? he said, citing the company?s ?great? products, and focusing on Mac OS X.
?Mac OS X is so far ahead of the others it?s not funny,? he affirmed.
Market share
Asked about Apple?s market share, Jobs confirmed that this remains at five per cent, but discussed Apple?s stated aim to double that share. ?We have a similar share of the market as Mercedes and BMW have of the automobile market,? he said.
But Windows remains the dominant operating system. ?Clearly, the PC is dominant,? agreed Jobs. ?Apple is certainly in second place. We?d like to narrow the gap,? said Jobs.
Looking at Apple?s relationship with Microsoft, Jobs looked back to the Microsoft-bashing Apple that existed before he returned to take the helm. ?We now have a good relationship with Microsoft ? it?s a good partner, and I think they feel the same about us.? Jobs also repeated his claim that the best version of Microsoft Office only runs on a Mac.
More extracts from the interview are available on the BBC Web site. <a href="http://news.bbc.co.uk/hi/english/business/newsid_2005000/2005495.stm"; target="_blank">http://news.bbc.co.uk/hi/english/business/newsid_2005000/2005495.stm</a>;
<hr></blockquote>
So much for when Jobs said that Apple was 'comfortable in its current niche'
GO APPLE! KICK @ss !
[ 05-24-2002: Message edited by: ZO ]</p>
[quote]
Friday - May 24, 2002
Steve Jobs: 'Apple will double market share'
By Jonny Evans
Apple CEO Steve Jobs made a rare TV appearance, giving an interview to the BBC?s News 24 business news service while in London on Wednesday.
The interview was broadcast last night at around 8:40pm. Jobs seemed energetic as ever, accompanied by Apple?s chief designer, Jonathan Ives.
Long-term Mac industry-watchers could be forgiven for thinking that Jobs stuck to Apple?s script throughout the three-minute segment.
R&D
Looking at the economic malaise around IT, Jobs said: ?We?re trying to innovate our way through this. While other manufacturers cut research and development spending and cut staff, Apple?s still hiring and putting money into R&D.
?We aim to create products that surprise and delight our customers,? he declared.
Apple has created major interest in its products in recent months, Jobs confirmed: ?There are more people interested in switching to Mac than ever before,? he said, citing the company?s ?great? products, and focusing on Mac OS X.
?Mac OS X is so far ahead of the others it?s not funny,? he affirmed.
Market share
Asked about Apple?s market share, Jobs confirmed that this remains at five per cent, but discussed Apple?s stated aim to double that share. ?We have a similar share of the market as Mercedes and BMW have of the automobile market,? he said.
But Windows remains the dominant operating system. ?Clearly, the PC is dominant,? agreed Jobs. ?Apple is certainly in second place. We?d like to narrow the gap,? said Jobs.
Looking at Apple?s relationship with Microsoft, Jobs looked back to the Microsoft-bashing Apple that existed before he returned to take the helm. ?We now have a good relationship with Microsoft ? it?s a good partner, and I think they feel the same about us.? Jobs also repeated his claim that the best version of Microsoft Office only runs on a Mac.
More extracts from the interview are available on the BBC Web site. <a href="http://news.bbc.co.uk/hi/english/business/newsid_2005000/2005495.stm"; target="_blank">http://news.bbc.co.uk/hi/english/business/newsid_2005000/2005495.stm</a>;
<hr></blockquote>
So much for when Jobs said that Apple was 'comfortable in its current niche'
GO APPLE! KICK @ss !
[ 05-24-2002: Message edited by: ZO ]</p>
Comments
Bleh.
...and murder their profit-margin. I don't mind paying for nice things. This has been rehashed a million times so I won't even start again....
Hee hee hee. Love that article, but can't help but feel a little of the radiation from the RDF!
"You don't need to see his identification. These aren't the droid you are looking for. Move along...."
[ 05-24-2002: Message edited by: Aslan ]</p>
<strong>Drop the price to a more reasonable (doesn't mean ultra cheap) range that many people can afford will surely double their marketshare.</strong><hr></blockquote>
apple has financial problems at the prices they sell at now. dropping the price across the board may sell a few more machines but likely would not be financially smart.
If Apple didn't have a Mhz problem and were shipping processors all in the 1-2Ghz range I don't think price would be much of an issue.
really sucks. but you can't expect lower prices just because their best processor tops off at 1Ghz
And he failed to mention that Apple's market share is falling, and has been falling for the past three years.
[ 05-24-2002: Message edited by: Nostradamus ]</p>
Does market share matter? If people buy the products and they make money its all good. Using Job's example, why dosn't BMW just lower their prices? To gain a few sales, then what?
Apple was dead in 1994, 95, 96,97, 98, 99, etc.
Care to give us REAL 100% proof that Apple is slowly dying? I don't see it and I don't think you do either... you just enjoy being a pessimist.
Mac Guru
<strong>Steve Jobs is lieing about Apple's market share being at 5%. It is not. Worldwide, it is around 2.7% and in the US, it is less than 3.5%.
And he failed to mention that Apple's market share is falling, and has been falling for the past three years.
[ 05-24-2002: Message edited by: Nostradamus ]</strong><hr></blockquote>
Naturally..the computer market has expanded greatly in the last 3 years so even though Apples market share is dropping slightly the "Pie" is much bigger.
at peak levels which is about 1,200,000 machines a quarter Apple has severe supply problems. Especially of imac and Powerbook.
How the hell do they pan on doubling that production capacity?
<strong>Yep, and Apple will be dead by the end of 1997
Does market share matter? If people buy the products and they make money its all good. Using Job's example, why dosn't BMW just lower their prices? To gain a few sales, then what?</strong><hr></blockquote> Not that I think Apple is dyeing but yes, marked share does matter. Marked-share is "less an issue" in the motoring industry as BMW's and other low marked share cars drive on the same roads as others. We need more developers to the platform and to many think 3,5% share is not worth the effort.
SHURE they will
<strong>
SHURE they will
Maybe if they bundled an SM57 with every machine?
<strong>one thing that I always find confusing when Apple talks of increasing their marketshare is production capacity.
at peak levels which is about 1,200,000 machines a quarter Apple has severe supply problems. Especially of imac and Powerbook.
How the hell do they pan on doubling that production capacity?</strong><hr></blockquote>
I assume (with all the caveats that apply) that, since they contract out manufacture of everything except PowerMacs, they secure a certain amount of production capacity and then get overwhelmed when either a glitch comes up or demand swamps their forecasts. They're obviously cautious about overestimating demand, because they end up with a lot of profit-killing inventory when they do. If they underestimate demand, they can always buy more capacity from their existing contractor(s), or bring another company on board, although it takes time to ramp up the new lines.
Given that, I imagine that if they foresee a need for double the inventory they'll simply buy double the manufacturing capacity.
[ 05-24-2002: Message edited by: Amorph ]</p>
Also, you can't refute the "Apple would increase market share by reducing prices" argument with "that wouldn't be financially smart."
And of course, let's use the godforsaken car analogies.
PC makers are dying too. Apple will only look more alive as Gateway fades...as the overlapped Compaq and HP lines are phased out.
<strong>Also, you can't refute the "Apple would increase market share by reducing prices" argument with "that wouldn't be financially smart."</strong><hr></blockquote>
Actually you can, but only in the extreme case: Apple's marketshare is moot if they go under. But as long as they boost price/performance as they are able, you're right. Apple knows this. That's why their margins are shrinking. Fred Anderson told analysts who were worried about the drop in margins last quarter that Apple was intentionally cutting them in an attempt to boost market share.
Some people might argue that they need to be less conservative in doing so, but I'm not surprised that they're being cautious, especially in this economic climate.
its time to think different
go apple
I doesn't matter how big the pie gets if your piece keeps shrinking. Eventually the rest of the pie is so big that even your few million users are not worth the time. Imagine a market of 1 Billion machines and you had one percent of that. 10 Million is pretty good. Or is it? Well, it's good if you sell PC's that take advantage of common software. It isn't so good if you sell macs that don't take advantage of common software development. Developers would have to be small time or desperate to even think of supporting the mac. Why sell to 10 Million users when you can sell to 990 Million?
If Market share gets too small REGARDLESS OF THE SIZE OF THE MARKET, you die, period. These are not cars which all utilize a common infrastructure. Think of it more like selling gasoline cars in a future world where 99% of people use hydrogen fuel. Eventually, only an idiot would open up a gasoline station.
The argument that marketshare can shrink so long as the pie keeps getting bigger is completely FALSE. It only holds water for machines on a common platform. If you sell a different platform, in essence a different infrastructure then you have to keep up just to avoid losing market share.
Apple knows this, and they're trying to embrace open standards, and plug into an existing infrastructure (UNIX) in an effort to increase sales/market-share.
In effect Apple is trying to be the 1% of filling stations servicing 'hydrogen' vehicles and hoping that they last long enough and technology moves fast enough, that the world catches up to them. More people start using hydrogen, more people start looking to the future, and you take advantage of the expansion as people move to your model/infrastructure.
An Apple with 1% of the market in America and globally would be a dead Apple.
Marketshare matters.
[ 05-24-2002: Message edited by: Matsu ]</p>
<strong>Steve Jobs is lieing about Apple's market share being at 5%. It is not. Worldwide, it is around 2.7% and in the US, it is less than 3.5%.
And he failed to mention that Apple's market share is falling, and has been falling for the past three years.
[ 05-24-2002: Message edited by: Nostradamus ]</strong><hr></blockquote>
wrong. UK market share is growing, up 2% while overall pc sales are down 4%.
It means that we will see faster PPC chips in the near future.
Just a positive thought :cool: