Mac enterprise sales surged in June: PED 2.0

  • Posted: 24 August 2010 01:58 AM

    Isn’t this big news?

    Is Apple’s next quarter profit going to double year over year?

    Mac enterprise sales surged in June

    Apple scored its biggest gains in government, big business and the European home market

    Given the Mac’s tiny share of the worldwide PC market—roughly 3.5% as of June—Apple (AAPL) has a lot of room to grow. And grow it did in the second quarter, as a note to clients issued Monday by Needham’s Charlie Wolf makes clear.

    Using IDC’s numbers for calendar Q2, Wolf takes a close look at Mac shipments in various market segments, from the home to the largest enterprises. Among his findings:

    At 35%, Mac shipment growth in June easily exceeded the market’s growth rate of 20.9%.
    Mac shipments grew 31.4% in the home market, topping the market’s growth rate of 25.2%.
    At 49.8%, the Mac’s growth in business was three times higher than the market’s 15.7%.
    Mac shipments in government grew 200%, sixteen times faster than the market’s 12.1%.

    http://tech.fortune.cnn.com/2010/08/23/mac-enterprise-sales-surged-in-june/?source=yahoo_quote

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  • Posted: 24 August 2010 02:16 AM #1

    jeffi:

    Thanks for the link. I spent some time tonight composing a comment on PED’s Verizon column. I’ll have to come back to the Mac sales column for comment tomorrow. The resurgence of the Mac is one of the most compelling Apple stories and is often overlooked with the focus on the iPhone and the iPad.

         
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    Posted: 24 August 2010 03:02 AM #2

    These are amazing figures. Based on any theory of market evolution, growth in the Mac can be considered almost anomalous. If this keeps up it should force us to think of what is really going on.

    A “better” product should not be growing in a market where the baseline product is “good enough”. Have user expectations moved to new dimensions of performance where Windows is not good enough? If so what are these new bases of competition. Is “consumerization” of computing the cause here?

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  • Posted: 24 August 2010 05:07 AM #3

    One term is tipping point, or everybody else is doing it.

         
  • Posted: 24 August 2010 03:30 PM #4

    DawnTreader - 24 August 2010 05:16 AM

    The resurgence of the Mac is one of the most compelling Apple stories and is often overlooked with the focus on the iPhone and the iPad.

    asymco - 24 August 2010 06:02 AM

    These are amazing figures. Based on any theory of market evolution, growth in the Mac can be considered almost anomalous. If this keeps up it should force us to think of what is really going on.

    A “better” product should not be growing in a market where the baseline product is “good enough”.

    Agreed and agreed.

    Something exciting is going on here. We truly may have reached a tipping point.

         
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    Posted: 24 August 2010 03:44 PM #5

    jeffi - 24 August 2010 04:58 AM

    Isn’t this big news?

    Is Apple’s next quarter profit going to double year over year?

    Mac enterprise sales surged in June

    Apple scored its biggest gains in government, big business and the European home market

    Given the Mac’s tiny share of the worldwide PC market—roughly 3.5% as of June—Apple (AAPL) has a lot of room to grow. And grow it did in the second quarter, as a note to clients issued Monday by Needham’s Charlie Wolf makes clear.

    Using IDC’s numbers for calendar Q2, Wolf takes a close look at Mac shipments in various market segments, from the home to the largest enterprises. Among his findings:

    At 35%, Mac shipment growth in June easily exceeded the market’s growth rate of 20.9%.
    Mac shipments grew 31.4% in the home market, topping the market’s growth rate of 25.2%.
    At 49.8%, the Mac’s growth in business was three times higher than the market’s 15.7%.
    Mac shipments in government grew 200%, sixteen times faster than the market’s 12.1%.

    http://tech.fortune.cnn.com/2010/08/23/mac-enterprise-sales-surged-in-june/?source=yahoo_quote

    If Mac enterprise sales surged it is because people brought in their Macs from home. The feedback I have received from my former clients (I once was a sales manager for an Apple VAR and then I owned my own VAR in the nineties) is that it is a hassle getting onsite support for Apple because apart from education resellers, Apple doesn’t have a traditional dealer network anymore. As such, business clients must map out their own support networks.

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    Posted: 24 August 2010 03:57 PM #6

    Im positive part of this phenomenon is from all of the college kids who have been leading the mac use trend and are now getting jobs where they are exerting their influence in what hardware they want or bring to their employment. From such a small percentage base that we have any decent increases are going to have a huge impact on bottom line. Im sure this is why Apple guided as high as they did, they have a whole lot more visibility on this than we do.

    The iphone and ipad have allowed the mac a more receptive welcome at companies that were formerly hesitant to allow macs on their networks.

         
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    Posted: 24 August 2010 04:32 PM #7

    asymco - 24 August 2010 06:02 AM

    ... A “better” product should not be growing in a market where the baseline product is “good enough”. Have user expectations moved to new dimensions of performance where Windows is not good enough? If so what are these new bases of competition. Is “consumerization” of computing the cause here?

    Please share your “answers” to your question whenever you’re ready tongue laugh.

    According to my friend, a CIO in a large corporation, more and more folks are aware that Mac is better* than PC.  However, despite all these, she is unable to persuade top management and the IT support department to replace PCs with Macs.  Macs are allowed in selectively.  This anecdote supports your view that PC could be no longer good enough.

    *Better looking, less crash prone, less viruses

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    Posted: 24 August 2010 05:22 PM #8

    Eric Landstrom - 24 August 2010 06:44 PM

    it is a hassle getting onsite support for Apple because apart from education resellers, Apple doesn’t have a traditional dealer network anymore. As such, business clients must map out their own support networks.

    Applecare INCLUDES on site repairs for desktop units if desired. And the cost is WAY WAY below that of securing independent support for Mac products.

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  • Posted: 24 August 2010 10:25 PM #9

    I posted this in another thread a couple of weeks back. We seem to have more and more of us thinking that we may have reached a tipping point. I’ll ask the question again—given our optimistic view, what do you think the market share of the Mac could reach 2-3 years?

    “My niece started university last year and I was very interested to hear about the freshman Mac penetration?however I ended up disappointed to hear her estimate of only 20-25%. Seeing those famous pictures had me thinking the number would be much higher.? She felt that it was basically a cost issue with students (pc centric parents wouldn?t help either). Still, hearing these numbers and generally seeing more and more Macs showing up in places I didn?t expect still has me feeling a break thru is coming. Windows 7 has pushed past the vista debacle yet nobody seems excited to buy a pc. Getting rid of an old vista machine is one thing, but replacing it with a win7 machine seems mostly driven by cost or merely making the easiest decision. It appears more and more people either have a Mac or want one.

    We are so focussed on iPad and iPhone, but does anyone think we could see Mac market share make a big leap in the next couple of years? The young folks are using macs, and the halo effect should help too. What would an optimist put Mac market share at in 2-3 years?”

         
  • Posted: 25 August 2010 01:34 AM #10

    asymco - 24 August 2010 06:02 AM

    These are amazing figures. Based on any theory of market evolution, growth in the Mac can be considered almost anomalous. If this keeps up it should force us to think of what is really going on.

    A “better” product should not be growing in a market where the baseline product is “good enough”. Have user expectations moved to new dimensions of performance where Windows is not good enough? If so what are these new bases of competition. Is “consumerization” of computing the cause here?

    I finally had a chance to post a comment on the column.

    One of the things I find intriguing is growth in government and education sales, because they are made through direct channels, may not be reflected in the preliminary NPD and IDC numbers.

    In response to your question, consumers are now buying into a paradigm rather than a product. There’s no Windows multi-product paradigm anymore.

         
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    Posted: 25 August 2010 04:13 PM #11

    cranium - 25 August 2010 01:25 AM

    I posted this in another thread a couple of weeks back. We seem to have more and more of us thinking that we may have reached a tipping point. I’ll ask the question again—given our optimistic view, what do you think the market share of the Mac could reach 2-3 years?

    “My niece started university last year and I was very interested to hear about the freshman Mac penetration?however I ended up disappointed to hear her estimate of only 20-25%. Seeing those famous pictures had me thinking the number would be much higher.? She felt that it was basically a cost issue with students (pc centric parents wouldn?t help either). Still, hearing these numbers and generally seeing more and more Macs showing up in places I didn?t expect still has me feeling a break thru is coming. Windows 7 has pushed past the vista debacle yet nobody seems excited to buy a pc. Getting rid of an old vista machine is one thing, but replacing it with a win7 machine seems mostly driven by cost or merely making the easiest decision. It appears more and more people either have a Mac or want one.

    We are so focussed on iPad and iPhone, but does anyone think we could see Mac market share make a big leap in the next couple of years? The young folks are using macs, and the halo effect should help too. What would an optimist put Mac market share at in 2-3 years?”

    I tried to take a crack at what the college take-up is for the Mac. It’s growing rapidly and it’s a good indicator of future share.

    see: http://www.asymco.com/2010/08/04/70-percent-of-college-freshman-are-entering-school-with-macs/

    US share of 20% does not seem impossible in 2 years.

    Beyond that it’s going to get tougher because the iPad will be good enough to replace many laptops so the surge from that category will begin to swamp PC share statistics.

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  • Posted: 25 August 2010 06:30 PM #12

    cranium - 25 August 2010 01:25 AM

    We are so focussed on iPad and iPhone, but does anyone think we could see Mac market share make a big leap in the next couple of years? The young folks are using macs, and the halo effect should help too. What would an optimist put Mac market share at in 2-3 years?”

    I’m less concerned with market share than revenue share. For me, that’s the metric of success. In terms of domestic market share, a doubling of market share within three years would be my optimistic goal.

         
  • Posted: 25 August 2010 09:33 PM #13

    deleted

    [ Edited: 28 May 2012 02:41 PM by blue sequoia ]      
  • Posted: 25 August 2010 09:51 PM #14

    DawnTreader - 25 August 2010 09:30 PM

    I’m less concerned with market share than revenue share. For me, that’s the metric of success. In terms of domestic market share, a doubling of market share within three years would be my optimistic goal.

    As much as I agree with you that revenue share is the primary goal, there is great PR value in market share. Apple could ratchet up their revenue forever and it would only convince the naysayers that Apple products were overpriced. But if Mac sales ever broke the 10% and especially the 20% barrier, it would not only turn heads, it would change perception which would, in turn, lead to increased revenue share.

         
  • Posted: 25 August 2010 10:01 PM #15

    DawnTreader - 25 August 2010 09:30 PM
    cranium - 25 August 2010 01:25 AM

    We are so focussed on iPad and iPhone, but does anyone think we could see Mac market share make a big leap in the next couple of years? The young folks are using macs, and the halo effect should help too. What would an optimist put Mac market share at in 2-3 years?”

    I’m less concerned with market share than revenue share. For me, that’s the metric of success. In terms of domestic market share, a doubling of market share within three years would be my optimistic goal.

    I completely agree re: revenue share. I spout those words all the time. I was looking for a sanity check to my own feelings that getting to 20% in this timeframe is a reasonable thought.

    It seems to be there are 3 types of computer owners:
    1/ Have a Mac
    2/ Want a Mac
    3/ Hate Apple

    Given the size of group 2 and the number of people I see converting from Group 2 to Group 1, I get to thinking we are often forgetting about the potential growth in this segment.