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NPD: Apple Market Share 66% for PCs over $1,000
by , 2:50 PM EDT, May 19th, 2008
The NPD Group has reported that Apple's market share at retail store fronts for the first quarter in the U.S. is 66 percent, but only for those PCs costing more than US$1,000. For all PCs, it is 14%.
"In notebooks they're [Apple] growing two times the market," said Stephen Baker, NPD's vice president of industry analysis. "Windows notebooks are pretty much flat right now."
"iMacs are growing and the Windows desktop ain't. No matter how you look at it, Apple is outperforming Windows," he added in a chat with Joe Wilcox and Apple Watch.
The logical question to ask is whether customers care about the OS installed and if it's Vista. However, Mr. Baker doesn't think Vista is to blame. His observation has been that the "vast majority of consumers" don't care which OS is installed on PCs.
Mr. Wilcox characterized Apple's market share in the premium category as phenomenal. Of course, TMO notes that several additional factors have to be take into account. Retail stores comprise only a fraction of how PCs are sold in the U.S. Many corporate PCs are purchased direct via contract and Dell sells most of its computers to companies and individuals via mail order. When one looks at the total number of PCs sold in the U.S., Apple's market share remains, as reported previously, in the 6 to 8 percent range. However, that number continues to grow.
Even so, Apple has found a gold mine in the retail store buying experience and is riding the wave. "Apple has got better distribution than it's had in the last 15 years," Mr. Baker explained. "They're in the right spot right now. There's the iPod advantage. But the big thing is the stores."
It's clear that in a battered economy, with individuals and corporations cutting back on discretionary, cheap, commodity PC purchases, Apple has the advantage. The company's personal approach to customer sales, the iPod and iPhone halo effect and Apple's appeal to upscale customers by offering premium products have fueled their growth while the rest of the industry has fallen flat.
Observer Comments
Mon May 19, 2008 4:21 pm Subject: Maybe, or maybe it is
QuoteGuest wrote:
Is it possible that in a tight economy buyers are more careful about good sized purchases such as a new computer, and that Macs are being seen as a better long term investment?
That could be the case, but there may be a number of factors. Gas, food, and variable rate mortgages not withstanding, not everyone is dire financial straits, not yet. Perhaps the people who buy the inexpensive PCs are hanging on to them whereas the those who still have discretionary cash are continuing to buy Macs. As for me I am waiting for the next MacBook model to be announced and I will snap one up.
I will tell you one thing, when I drop into the local Apple retail store it is usually very busy and the people are buying more than just iPods.
Mon May 19, 2008 6:17 pm Subject: I doubt the upgrade story
The argument frequently arises about the "upgradability" of standard PCs, but misses the larger point - few people actually do that. Most PC users are like the general population, and they have enough trouble with email attachments and lost photos. Replacing video cards and RAM are simply out of the equation for the great majority of people, regardless of platform.
So I will wager that for all those PC users who buy $800 junk boxes at Best Buy, over 90% will just remain $800 junk boxes. The aftermarket parts industry survives on professionals and a dedicated 10%, tops.
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