I've worked for my present company for the last 10 years. I've gone from seeing the MIS personal cussing the Macs in my deparment and vowing to get rid of them, to watching those same PC weenies years later stroll around at lunch with their iPods. One of them owns like nine different iPods I heard. Oh, it's a great time to be an Apple fan. Here's hoping the market share continues to climb......Next stop. The business market.
I became a shareholder only after being a Mac owner. I hated computers before I was introduced to a sexy little iBook 5 years ago. Sure you can discover Macs at little third party retail stores, or Best Buy or where-ever, but in those environments they are sitting amongst a bunch of other crappy Dell's and stuff, it's like guilt by association.
Only when you wander upon a shiny modern glass Apple Store are you introduced correctly. The stores are like little pieces of jewelry, sparkling and curious. Apple Stores, I think are key to driving sales and higher market share.
My cousin Brian, 13 years old, having been turned onto Apple by me a couple years ago loves to just go to the store and look around. The other day he said, "I went to the Apple Store with my mom today." I said, "oh yeah?"
In a very serious sort of sigh he says, "I just love everything in that store..." I laughed and said in agreement, "Yeah, it's pretty cool isn't it."
I would prefer that Apple continue its successful combination of high price/smaller volume strategy + envelope-pushing, and stay under 10% share. It has worked brilliantly for nearly a decade, and has created a great deal of value.
I am concerned that, with anything much over 10%, two types of pressure start to creep in: the pressure to price lower and lower (with resultant quality implications, which we are already witnessing), and the attention of malware providers.
Market share (beyond a point) does not equal value.
apple isn't the little guy - 20,000 employees a year ago. i'm guessing 25k+ now.
i'm sure at least a few of those guys are analyzing when and where to open apple stores, in europe, asia, international space stations, redmond, WA, dubai, etc. etc. etc.. there are probably a dozen more working out lease deals and going over tenant fit-out guidelines for stores being designed in typical apple secrecy. they're not going to expand too far too fast [krispy kreme, anyone?].
i love almost everything designed by apple, hardware and software. i love my iphone, macbook and my pro mac at work, but i'm more interested in seeing where ELSE apple can grow. if it weren't for the iPod, apple would be in the same place it was 6 years ago. i hope they continue to expand to other consumer electronics. how would apple approach the digital camera or camcorder? car stereo/navigation? video game systems? a REAL appleTV? what's on the boards in the ive-ory tower?
I would agree that the sweet spot of market share for Macs would be 15-20%.
Apple has monopolistic practices, but we Mac users actually appreciate them and benefit from them. These practices aren't illegal, because the Mac is a minority platform. Many people believe that you are not compelled to use the Mac because Windows is a viable alternative (even though it really isn't )
If the Mac were to achieve a much higher market share, they may face anti-trust actions.
On the other hand, that 15-20% of the market would pressurize developers like, say, Adobe to keep the release of apps and upgrades reasonably similar for the Mac and Windows.
Also, at that market share, the opportunities for Mac-only developers may make the pursuit more feasible.
It's a nice goal to aim at and I am happy that Apple is approaching it (as opposed to receding from it.)
Hmmm...
I don't agree with your point regarding Apple and it's "monopolistic ways". The only way Apple could be a monopoly and face possible anti-trust action is if Apple increased it's market share to 100% for computer hardware.
Apple doesn't licence its hardware to other hardware manufacturers and it develops its own OS software which it doesn't force on those previously mentioned hardware manufacturers. Just because Apple exercises tight control over its own hardware and software does not mean Apple has "monopolistic ways".
Plus, there would still be plenty of choice out there even if Apple's market share doubled or tripled.
The U.S. is only part of the picture guys. Apple has zero stores in most countries, which equates to much smaller mind share in those respective populaces. The iPhone and all the new iPods are a huge factor in that mind share, if not the only factor in some places. Apple needs to seriously address the issues they have in Europe, Asia and Australia in this regard.
First things first, get on with opening a heck of a lot more stores. Seriously, it's ridiculous at this stage. Starbucks opens 7 new stores every day, Apple doesn't even open 7 stores a week. I know there's no comparison being that Apple's stores likely cost a lot more, and are bigger physically, but there's too many countries with zero Apple stores, and even a continent without one.
How'd you like them Apples?
I agree with on your point regarding Apple's Marketing outside of North America. Things I've read and heard seem to point that Apple's marketing of it's computer products revolves around North America, specifically the US, and is somewhat non-existant in the rest of the world (ie. Europe and Asia both of which are dominated by PC hardware). The iPhone may pave the way to exposing Apple's other products to these markets if it sells well in Europe and Asia.
You are missing the point. One of the reasons Apple has enjoyed such a surge in Mac sales is primarily because of their stores which keep growing in the US. If one looks more closely at the numbers, outside of US sales have remained rather flat for the last year going from a low of 39% to a high of 43% and ending at 40% last quarter. If Apple opened up more stores outside of the US they could grow more internationally.
They don't need a store a week, but one a month would be nice, especially in Europe.
The reason that the stores have been so profitable is that they build them in locations where consumers have a TON of extra cash and want the cache that comes from spending a lot of money on a consumer good. Build 10 Apple stores in Northern Cal and that's great. Build 10 in Arkansas and see what happens.
Apple thrives on the "high hanging fruit" - Apple stores in poorer areas (and by poorer I don't mean poor - I mean anywhere near average wealth as compared to the USA standard) will do badly. Which is why they don't build them there.
To start building the kind of numbers some people apparently want, they will have to go in worse and worse locations, and the results will suffer.
The UK seems to be pretty high up on Apples 'outside the US' agenda.
We get things pretty well simultaneously, seem to be the first to get new products after the US (like the iPhone) and old Jobs makes quite a few trips over here a year.
However, I also live in Australia now and again, and it seems to be the reverse situation there. Only now is an Apple Retail store finally making an appearance. Which is a shame as the Mac is quite popular.
I guess the leading factor is population per square mile. The UK is pretty densely populated and is also one of the countries where computer and software companies feel they can charge a 'premium'.
They have VERY few stores in Canada too. Just four stores in fact... and of course... three of those are in Toronto. I'd love to see stores in some of the smaller cities.
Market share (beyond a point) does not equal value.
Very true. I hope Apple will be able to detect that turning point and try to stay right below it. Ideally, the market share has to be high enough to entice some important developers. But low enough to keep away malware developers. It has to be slow enough to allow Apple to keep the level of quality we all know and love but high enough to allow Apple to rake in enough cash to innovate more.
Why would Asia be tough? Is it due to Apple's lack of a ultra portable computer or is for other reasons?
Well, with the exception of Japan and perhaps Korea, I don't think the general standard of living permits asians to own something as expensive as an iPhone or a Mac.
Well, with the exception of Japan and perhaps Korea, I don't think the general standard of living permits asians to own something as expensive as an iPhone or a Mac.
Yeah, didn't consider that. Was only thinking of Japan.
I think an ultra portable would sell well in Japan though.
Could someone give an idea of which countries they think Apple isn't doing enough business in (I assume we're just talking about countries for which OS X is localized, of course..)
A longtime friend wants a new computer because her present one is "slow". Rather than tell her that it's just probably Windows gunk (or possibly spyware/adware), I encouraged her to go to the nearby Apple Store and "kick the tires".
Wow, 8% U.S. market share, though. That's pretty impressive if the figures are accurate. Does anyone have a graph of previous market share estimates by Gartner and IDC?
Even more impressive if you consider that Apple's US share is likely heavy on consumer share, where Windows is weighted with Business share...take out the business share or Windows, and the picture is waaaaay rosier for Apple
What's interesting about the Gartner estimates (which don't agree much with the IDC numbers) is that non Apple PCs grew at 2.6% vs Apple at 37%. If true, it's a very telling story about the health of Vista. For Apple to show that kind of growth in the quarter leading up to an OS upgrade is very impressive.
Comments
Only when you wander upon a shiny modern glass Apple Store are you introduced correctly. The stores are like little pieces of jewelry, sparkling and curious. Apple Stores, I think are key to driving sales and higher market share.
My cousin Brian, 13 years old, having been turned onto Apple by me a couple years ago loves to just go to the store and look around. The other day he said, "I went to the Apple Store with my mom today." I said, "oh yeah?"
In a very serious sort of sigh he says, "I just love everything in that store..." I laughed and said in agreement, "Yeah, it's pretty cool isn't it."
I am concerned that, with anything much over 10%, two types of pressure start to creep in: the pressure to price lower and lower (with resultant quality implications, which we are already witnessing), and the attention of malware providers.
Market share (beyond a point) does not equal value.
In due time, Apple will spread to Europe and Australia...
In overdue time.
i'm sure at least a few of those guys are analyzing when and where to open apple stores, in europe, asia, international space stations, redmond, WA, dubai, etc. etc. etc.. there are probably a dozen more working out lease deals and going over tenant fit-out guidelines for stores being designed in typical apple secrecy. they're not going to expand too far too fast [krispy kreme, anyone?].
i love almost everything designed by apple, hardware and software. i love my iphone, macbook and my pro mac at work, but i'm more interested in seeing where ELSE apple can grow. if it weren't for the iPod, apple would be in the same place it was 6 years ago. i hope they continue to expand to other consumer electronics. how would apple approach the digital camera or camcorder? car stereo/navigation? video game systems? a REAL appleTV? what's on the boards in the ive-ory tower?
think different about where to think different.
I would agree that the sweet spot of market share for Macs would be 15-20%.
Apple has monopolistic practices, but we Mac users actually appreciate them and benefit from them. These practices aren't illegal, because the Mac is a minority platform. Many people believe that you are not compelled to use the Mac because Windows is a viable alternative (even though it really isn't
If the Mac were to achieve a much higher market share, they may face anti-trust actions.
On the other hand, that 15-20% of the market would pressurize developers like, say, Adobe to keep the release of apps and upgrades reasonably similar for the Mac and Windows.
Also, at that market share, the opportunities for Mac-only developers may make the pursuit more feasible.
It's a nice goal to aim at and I am happy that Apple is approaching it (as opposed to receding from it.)
Hmmm...
I don't agree with your point regarding Apple and it's "monopolistic ways". The only way Apple could be a monopoly and face possible anti-trust action is if Apple increased it's market share to 100% for computer hardware.
Apple doesn't licence its hardware to other hardware manufacturers and it develops its own OS software which it doesn't force on those previously mentioned hardware manufacturers. Just because Apple exercises tight control over its own hardware and software does not mean Apple has "monopolistic ways".
Plus, there would still be plenty of choice out there even if Apple's market share doubled or tripled.
The U.S. is only part of the picture guys. Apple has zero stores in most countries, which equates to much smaller mind share in those respective populaces. The iPhone and all the new iPods are a huge factor in that mind share, if not the only factor in some places. Apple needs to seriously address the issues they have in Europe, Asia and Australia in this regard.
First things first, get on with opening a heck of a lot more stores. Seriously, it's ridiculous at this stage. Starbucks opens 7 new stores every day, Apple doesn't even open 7 stores a week. I know there's no comparison being that Apple's stores likely cost a lot more, and are bigger physically, but there's too many countries with zero Apple stores, and even a continent without one.
How'd you like them Apples?
I agree with on your point regarding Apple's Marketing outside of North America. Things I've read and heard seem to point that Apple's marketing of it's computer products revolves around North America, specifically the US, and is somewhat non-existant in the rest of the world (ie. Europe and Asia both of which are dominated by PC hardware). The iPhone may pave the way to exposing Apple's other products to these markets if it sells well in Europe and Asia.
You are missing the point. One of the reasons Apple has enjoyed such a surge in Mac sales is primarily because of their stores which keep growing in the US. If one looks more closely at the numbers, outside of US sales have remained rather flat for the last year going from a low of 39% to a high of 43% and ending at 40% last quarter. If Apple opened up more stores outside of the US they could grow more internationally.
They don't need a store a week, but one a month would be nice, especially in Europe.
The reason that the stores have been so profitable is that they build them in locations where consumers have a TON of extra cash and want the cache that comes from spending a lot of money on a consumer good. Build 10 Apple stores in Northern Cal and that's great. Build 10 in Arkansas and see what happens.
Apple thrives on the "high hanging fruit" - Apple stores in poorer areas (and by poorer I don't mean poor - I mean anywhere near average wealth as compared to the USA standard) will do badly. Which is why they don't build them there.
To start building the kind of numbers some people apparently want, they will have to go in worse and worse locations, and the results will suffer.
We get things pretty well simultaneously, seem to be the first to get new products after the US (like the iPhone) and old Jobs makes quite a few trips over here a year.
However, I also live in Australia now and again, and it seems to be the reverse situation there. Only now is an Apple Retail store finally making an appearance. Which is a shame as the Mac is quite popular.
I guess the leading factor is population per square mile. The UK is pretty densely populated and is also one of the countries where computer and software companies feel they can charge a 'premium'.
Market share (beyond a point) does not equal value.
Very true. I hope Apple will be able to detect that turning point and try to stay right below it. Ideally, the market share has to be high enough to entice some important developers. But low enough to keep away malware developers. It has to be slow enough to allow Apple to keep the level of quality we all know and love but high enough to allow Apple to rake in enough cash to innovate more.
In due time, Apple will spread to Europe and Australia...Asia would be a tough market though.
Why would Asia be tough? Is it due to Apple's lack of a ultra portable computer or is for other reasons?
Why would Asia be tough? Is it due to Apple's lack of a ultra portable computer or is for other reasons?
Well, with the exception of Japan and perhaps Korea, I don't think the general standard of living permits asians to own something as expensive as an iPhone or a Mac.
Well, with the exception of Japan and perhaps Korea, I don't think the general standard of living permits asians to own something as expensive as an iPhone or a Mac.
Yeah, didn't consider that. Was only thinking of Japan.
I think an ultra portable would sell well in Japan though.
Could someone give an idea of which countries they think Apple isn't doing enough business in..
I don't have all day.
A longtime friend wants a new computer because her present one is "slow". Rather than tell her that it's just probably Windows gunk (or possibly spyware/adware), I encouraged her to go to the nearby Apple Store and "kick the tires".
You're quite a "friend".
Um, no.
Wow, 8% U.S. market share, though. That's pretty impressive if the figures are accurate. Does anyone have a graph of previous market share estimates by Gartner and IDC?
Even more impressive if you consider that Apple's US share is likely heavy on consumer share, where Windows is weighted with Business share...take out the business share or Windows, and the picture is waaaaay rosier for Apple