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Monday, January 24, 2005
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Saturday, January 22, 2005
Apple market share - behind the numbers
Reuters reports that Apple Stores opened an hour earlier today to unveil the new Mac Mini. The article discusses how it may be the Mac Mini, and not the iPod, that will be key to make Windows users switch. It notes that after the recent earnings report, many analysts believe there is a strong case for a halo effect, but the analysts the article interviews argues differently. Reuters finally whips out the numbers, that Apple market share stands at 2.0% worldwide and 3.4% in the US.
The article is pretty neutral on Apple (NASDAQ: AAPL), though it focuses on the opinion that iPods do not sell more Macs. Mac sales were up in the recently reported quarter but there is not statistical evidence of causality between iPod sales turning into Mac sales. I read a recent article that argued these increased Mac sales were more the result of Windows users getting tired of viruses, spyware, and spam (though OS X doesn’t provide any additional defense against spam).
This article, like most articles on Apple’s market share, likes to focus on the single digit percentage that is Apple market share and frames it in a way that really minimalizes it. I wish these reporters could also post a comparison, because when they do, the numbers are more informative. Only Dell and HP regularly have double-digit market share in the US with IBM or Gateway have single to low-double digit market share as they fight for third. Apple, even with 3.4%, is often ranked as the fourth largest maker of personal computers in the US.
The worldwide number is always smaller. The reason for this is because the US government doesn’t even allow Mac (which are considered supercomputers by those concerned) exports to most countries. In 1999, Democrats had tried to pass a bill that would have allowed Macs to be sold without a 6-month Congressional review (it only takes 30 days to review the sale of an F-16). The measure failed as many considered Macs in the hands of dangerous people as…well…dangerous. And so, few places outside of the US, Canada, Japan, and Western Europe can even buy Macs.
Part of the problem is also that a vast number of computers are found in the office, a place Apple does not really market to. If you came to Princeton University, you would think that Macs have nearly 50% market share when you walk around seeing students work at the library. In the fall, I remember reading an article surveying campus computer stores that reported double-digit Mac market share in the back to school selling season, with some university computer stores reporting Macs having as much as 60% market share for sales to students. I believe Apple continues to grow among the consumer computer market. But the numbers are deceiving due to corporate sales numbers. If Apple begins to focus more on the corporate sector, these market share percentages could drastically improve.
The article is pretty neutral on Apple (NASDAQ: AAPL), though it focuses on the opinion that iPods do not sell more Macs. Mac sales were up in the recently reported quarter but there is not statistical evidence of causality between iPod sales turning into Mac sales. I read a recent article that argued these increased Mac sales were more the result of Windows users getting tired of viruses, spyware, and spam (though OS X doesn’t provide any additional defense against spam).
This article, like most articles on Apple’s market share, likes to focus on the single digit percentage that is Apple market share and frames it in a way that really minimalizes it. I wish these reporters could also post a comparison, because when they do, the numbers are more informative. Only Dell and HP regularly have double-digit market share in the US with IBM or Gateway have single to low-double digit market share as they fight for third. Apple, even with 3.4%, is often ranked as the fourth largest maker of personal computers in the US.
The worldwide number is always smaller. The reason for this is because the US government doesn’t even allow Mac (which are considered supercomputers by those concerned) exports to most countries. In 1999, Democrats had tried to pass a bill that would have allowed Macs to be sold without a 6-month Congressional review (it only takes 30 days to review the sale of an F-16). The measure failed as many considered Macs in the hands of dangerous people as…well…dangerous. And so, few places outside of the US, Canada, Japan, and Western Europe can even buy Macs.
Part of the problem is also that a vast number of computers are found in the office, a place Apple does not really market to. If you came to Princeton University, you would think that Macs have nearly 50% market share when you walk around seeing students work at the library. In the fall, I remember reading an article surveying campus computer stores that reported double-digit Mac market share in the back to school selling season, with some university computer stores reporting Macs having as much as 60% market share for sales to students. I believe Apple continues to grow among the consumer computer market. But the numbers are deceiving due to corporate sales numbers. If Apple begins to focus more on the corporate sector, these market share percentages could drastically improve.