Apple Claims 91% of $1,000+ PC Market Revenue in June

[MacRumors]

Betanews reports (via The Loop) that according to market research firm NPD, Apple claimed 91% of the revenue market share for computers costing $1,000 or more in June. While NPD's sales numbers are limited to brick-and-mortar retail stores, the data shows a remarkable continuation of a trend that has been in place for several years now. While Apple's overall unit market share remains below 10%, the combination of Apple's growing market share over the past several years, refusal to compete in the low-end market, and declining Windows PC prices have led to Apple's domination of the "premium" price segment.

According to NPD, in June, average selling prices for all PCs sold at US retail was $701, or $690 for desktops and $703 for notebooks. But the ASPs get more interesting when comparing Macs to Windows PCs. For all Windows PCs, ASP was $515 in June. For Macs: $1,400. Desktop Windows PC ASP: $489. Mac desktops: $1,398. Windows notebook ASP was $520, or $569 when removing all those nasty, margin-sucking netbooks. Mac laptops: $1,400.

Mac ASPs have been higher for a long time, because Apple chooses not to compete at lower prices. The real entry price for Apple computers is $999 for the white MacBook and $1,199 for either the low-end iMac or MacBook Pro. By comparison, Windows netbooks sell for as little as $199, unsubsidized, and even some fuller-sized laptops don't cost much more. For example, HP laptops start at $349.99 after rebate.

With Apple's outstanding performance in the PC market in which it plays, the question becomes whether it can continue to find ways to expand its market and drive continued growth. Given Apple's reluctance to participate in the low-end market, the key to continued Mac growth appears to be Apple's ability to draw consumers into the higher-end market through the perceived value of its offerings. Recent price cuts across its notebook line are clearly one method Apple has chosen in order to entice would-be customers to consider Macs.

Based on data from NPD and other analysts, including Piper Jaffray's Gene Munster, Apple's price cuts at the high end significantly boosted Mac sales, which at US retail were up 16 percent year over year in June. Rather than aim low, Apple chose to make the high lower, in a segment where Macs already commanded overwhelming market share.

Article Link: Apple Claims 91% of $1,000+ PC Market Revenue in June

 

[iAlexG]

That is a huge share but surely thats because most other laptops are between $500-$1000? Anyway good job apple !!! And i'm part of that share yay!!!

 

[kaisdaddy]

If you're going to own a market...

...the high-end market is not a bad place to be!

 

[talkingfuture]

Thats a heck of a good market share!

 

[Grimace]

As was said on the recent earnings conference call, "We don't want to make the most computers, we want to make the best computers."

Profitability is key to surviving - not overall numbers. In the end, Apple is a company out to make money...and with the quality products that have shown up in the last many years, I am happy to pay whatever is asked.

 

[SFStateStudent]

I'm a Mac, and you're NOT even close....

Good job Apple!!!

 

[NAG]

This must be the effect of the Laptop Hunters ads.

 

[Chris Rogers]

I feel bad for the other 9%

 

[mattster16]

This just proves that macs are overpriced garbage!


(at least some people will try to spin this news that way)

 

[Daremo]

Yeah, but every Apple Laptop but one is $1000+, so is capturing 91% of that share really a surprise? It's basically their entire lineup competing.

 

[bukweet]

Where's the mid-range tower?

Yeah, great market share.

Now if they'd only bring out a mid-range tower... say for about $1500.

Not everyone needs an all-in-one with a glossy screen.

 

[masse]

Yeah, but every Apple Laptop but one is $1000+, so is capturing 91% of that share really a surprise? It's basically their entire lineup competing.

no the point is that there are hundreds of notebooks and desktops that sell for $1000+, but macs are destroying pc's in this price range.

 

[techfreak85]

and this is surprising how?

ya most people i know wont buy a computer over 1000, unless its a mac.

 

[dernhelm]

Yeah, but every Apple Laptop but one is $1000+, so is capturing 91% of that share really a surprise? It's basically their entire lineup competing.

Huh? I mean there are plenty of >$1000 offerings from Alienware, Toshiba, IBM, Dell, etc. It isn't like they're competing only against themselves.

This IS a pretty big deal - and points back to: people who know what they're getting and care about what they're getting buy a mac. Those that can live with something cheapo because they don't know the difference, or simply don't care about the difference don't buy a mac.

And by the way, that isn't meant to be denigrating at all to those users who don't want to pay the price premium. I don't care a lot about high-end performance in my car, so I own a Saturn and a Chevy. Both of which are cars that get me from A to B reliably. People who know and care about performance are probably buying Porsche, Jaguar, Mazerati, or something else. That's fine, if they point out that their car is better designed and better built than mine, I'll just agree and move on. I haven't been insulted, they simply pointed out a fact, that probably didn't matter to me anyway.

Same with computers - high-end $2000 computers are going to be better than a $350 computer. Maybe in ways that you don't care, but they are better. What's interesting here is that once you decide you want and care about a >$1000 computer you are in a staggering minority if you buy anything other than a mac.

 

[topgunn]

Huh? I mean there are plenty of >$1000 offerings from Alienware, Toshiba, IBM, Dell, etc. It isn't like they're competing only against themselves.

However, most of the brands you mention are bought online and thus are not included in this report.

 

[Cynicalone]

If Apple could find a way to compete in the sub $1000 market they could really hammer Microsoft. I just don't think they give a damn about that market.

 

[shareef777]

This is for brick and mortar stores only. I'd wager that if online sales were included, that the percent would drop significantly. I'd even say it would be less then 50%.

 

[Eidorian]

Computers over $1,000 are usually Macs.

Core i7 can be had for less and if you look hard enough with a monitor too.

 

[NinjaHERO]

If it ain't broke, don't fix it. Apple, keep making those high end machines.

 

[-hh]

This is for brick and mortar stores only. I'd wager that if online sales were included, that the percent would drop significantly. I'd even say it would be less then 50%.

Agreed, but this still doesn't bode particularly well for BEST BUY or FRY'S, where those MS "Laptop Hunter" ads were filmed...


-hh

 

[RaZaK]

is this really good for Apple?

With the economy in the tank, i'm not surprised this isn't more like 99.999% with only .001% representing professionals who absolutely need powerful Win PC's as well as gamers.

I love Apple, but i don't know how they can hope to continue being successful without addressing the lower end market more.

 

[Leafminer]

It would be really nice if they reported what market share sub-$1000 computers have overall to put things in perspective. But perhaps that blows the headline drama?

 

[Rychy]

Wow! 91% is quite impressive.

Thinking about it now... I know one person with a Dell laptop what was probably over a $1000 bucks.

 

[iOrlando]

oh there are laptops for sale that are under $1,000?

 

[Shiner]

Funny thing is apple has no need to drop into the lower market whatsoever. They use the same cheap parts as everyone else but slap an apple on it and sell it for $1000. People perceive it as high end equipment and eat it up. I love mac but their new lineup is not worth the cost. For christ's sake people their top of the line video card is a 9600GT!!!