Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
i find it ironic that this thread is in response to a Jobs quote that says basically, "while i was gone, they worried about profits and not market share, so they almost failed" and then most of these threads are saying "Well, they may not have marketshare now, but at least they have profits!"

Microsoft is nothing close to complacent. They are just huge. I've seen in the last 6 months 4 separate "builds" of longhorn's GUI, and some of the underlying features look potentially pretty revolutionary.

The xBox is holding a LOT of their attention, and the whole Media PC thing (where is apple on this market???), not to mention MS is waiting patiently for 3rd party developers to flesh out the latest stuff on DirectX so they can see safely where to focus in DX9. They are waiting for BTX and PCI X-16 and 64-bit to all become truly standardized and to gain some marketshare of their own.

Demanding users drive the market. The most demanding computer users are Creative professionals and gamers. "Serious" gamers outnumber the creative professionals (i am both) about 10 to 1, and as a result, the competition and hardware innovation in PCs (because mac gaming is, let's face it, pretty sad), is extremely aggressive by comparison. My home box (a hand-built 800 dollar PC) had 240GB of SATA RAID 0 and 7.1 surround, dual 100/T, the REAL 9600 Pro (128mb), 1.5GB of PC 3200 (overclocked to ~3800), and a load of other crap when I built it in May of last year. My benchmarks in every single dual-platform game are consistently 20-200% higher than those posted by Dual G5 players.

I appreciate OS X a great deal, and I'm glad it is finally working properly, but why did I have to pay for Jaguar? 10.1 was to put it mildly, beta software.

The most useful thing about Panther is Expose, which is about 6 years overdue (the windows button that shows the desktop appeared in Win98). The only other useful change is that they made the Finder windows less friggin' retarded. hardly 130 dollars worth of innovation.

Apple has a good chip with the G5, but they need to let go of the reigns. If you let the 3rd party hardware world get their hands on a mobo schematic and give them free reign to work on the G5, you'd see 1.6 Ghz boxes that could actually keep up with P4 gaming machines. And if you want to know the truth, all the system resources that graphic designers and professional musicians use are the same ones that gamers use. We need constant, reliable through-put, quick access times and fast drive read/write, and we need flexible, fast, and consistent data processing, and we need a stable environment. We also need the cutting edge, and Apple is currently at the mercy of 2 companies when it comes to that. ATI and IBM. So far, they have held up the deal pretty well, but i question how much true support a 2% market is going to maintain for ATI, when they are chipping heavily into nVidia's market on the PC side. They secured the next xBox already, and the 9X00 series has dominated the FX5 series across the price-board. If ATI decided that the ACD display connection was too much trouble, what would Apple do? They can't really force their hand with a 2% marketshare, now can they?

AMD is pushing fast, and whatever Apple's selected benchmark test may say, the FX single processor is on par with the G5 dual, and it's cheaper if you get it anywhere other than Alienware (the world's most overpriced PCs). Commercially available overclocking solutions already have the 2.2 GHz FX-51 running at a stable 2.8 GHz, which figures in at about a Pentium 4.5 Ghz in 32 bit mode and God-knows-how-fast in 64 bit mode.

In short, I wish I could run OS X on a PC, because I could do some incredible things for a lot less money than Apple wants to force me to pay.

My 8,000 dollar UMAX scanner (the PL 3000) still doesn't work with OS X as of Panther, even though it's worked in windows XP for almost 3 years now...I must keep an old G3 booting 9.2.2 just to get a decent scan done.

By the way, last week I bought a great new cordless mouse and keyboard, and to check it out i plugged it in on my PC at home, and it worked (even all the "extra" buttons on the keyboard) without even needing a restart or inserting a driver disc or anything. It just started working.

I took it here to work, and found myself needing to not only install drivers for OS X, but also to download additional drivers for the scroll wheel on the mouse to work. I don't want to hear about that crap ever again. I use a Mac every day, and I want to, but I'm making so many concessions with it that I shouldn't be. I'm "right down Apple's ally" because I spend all day in Adobe programs building pages and graphics, even cutting some music on the side, but I need to use my PC for the audio stuff because none of my cards work in a G5.
 
Re: I Don't Get It

Originally posted by mhouse
While I have no reason to doubt the veracity of the marketshare numbers that people usually mention for Apple (2-5 percent), they really do baffle me.

I live in a (relative to others which have apple stores) small market but we do have an Apple store here and let's just say I am pretty familiar with it. That store sells Macs all day everyday. Really. At a pace that is pretty amazing and that can't possibly be explained by existing Mac users simply upgrading.

I'm not sure how long this marketshare data takes to surface but I would be shocked if the numbers don't improve pretty significantly in the next year... because the sales rate I've seen are not those of a 2% marketshare.



yeah i hear you. it's the same here in new york. everytime i'm in the SoHo store, the line snakes all the way to the back of the store and i see so many people making purchases its mind boggling...
 
Originally posted by johnnyjibbs
So Jobbs is predicting Microsoft becoming complacent...:D

Exactly. This is beautiful!

Wait.....say Apple, by some miracle, surpasses Microsoft (someday) in terms of market share. Would this be that great for consumers, or woudl Apple become the new Microsoft? Interesting.
 
Re: Re: Re: Re: Re: It's Market Share, stupid. No, profits. No, Market Share.

Originally posted by sedarby
Thinking like a salesman. Look, Apple is not a commodity item. It has always been for more money better user experience and this does cost more than what Billy Bob can through together or pick up at Walmart. Apple has not been in the business of producing junk and I respect them for that.

I for one appreciate a fine automobile and yes I will pay extra. Apple is not the Ford Escort of the computing world nor should it ever be. Elitist? No, just willing to pay for the best computing environment available.

LOL
Jobs said the original Apple execs were thinking like salesmen because they valued profit margin over expanding their marketshare. So I explain how Apple can expand their marketshare at the expense of a little profit margin and you call me a salesman. Perhaps you ought to take it up with Jobs since your beef is obviously with him!

Now, to your actual points:

Computers are commodity items. And as long as Apple pretends they aren't they will continue to lose marketshare. Very few people actually want to buy luxury computers.

It's funny that comparisons are often made to luxury car makers. Isn't it ironic then that most of the luxury car makers (Porsche, BMW, Mercedes) that Apple is compared to are actually releasing cheaper vehicles to try and expand their marketshare?

Apple can build a high quality usable system that still sells for more than their competitors and gain marketshare in the process. The problem is Apple is too far from the sweet spot. I realize this. Apple realizes this (I just don't know what they are planning to do about it). When are you going to realize this? Stop thinking like a salesman!!!
 
Can anyone here say what Apple's consumer market share is compared to it's enterprise market share? Is the education market considered enterprise or consumer ?
 
Re: Re: Re: Re: Re: It's Market Share, stupid. No, profits. No, Market Share.

Originally posted by sedarby
Elitist? No, just willing to pay for the best computing environment available.

yeah
939 $ (without tax ) for the cheapest emac with 128 mb ram here ... what would you call that ? i call it elitist.... my athlon xp (with twice the HD, 1GB RAM , Geforce Ti 4200: a_lot_ faster than those emac graphics, 6 usb 2.0, sony cd writer,)..paid 850...nearly 2 years ago... sure without a monitor but i get a new monitor for free every 2 years ...(pretty decent compaqs the last time)

there a lot of people which would switch for a small _headless_ mac for 1000 $ with upgradable graphics card,HD and ram....
 
Re: Re: Re: Re: Re: It's Market Share, stupid. No, profits. No, Market Share.

Originally posted by Trekkie
Used windows with 128MB or 256MB those sub $700 PCs come with lately? They make Mac OS X on 256MB seem fast.

Actually the $600 HP I configured for my mom came with an Athlon XP2200, 512MB RAM, 80 GB HD, and a 64MB Geforce4 MX.

And yes I have used XP on a PC with that much RAM and it is comparable in responsiveness (or maybe a little faster) to Max OS X on a system with similar RAM.

This mantra that a $600 PC must be junk just has to stop. It's simply not true people!!!!!
 
Re: Re: Re: Re: It's Market Share, stupid. No, profits. No, Market Share.

Originally posted by DGFan
Sure, you get a monitor with the Mac but if you dont need one (and lots of people don't) why would you ever buy the Apple?

That's the market Apple is missing. All it needs to do is come out with a headless iMac and squeeze the profit margin down a bit.

If they hadn't been motivated to do this before I am sure last quarter's numbers for the iMac/eMac (which were downright pathetic) will light the fire under them. They can't afford to lose the consumer market.

You're thinking like a person that has owned a lot of computers, not a person who wants a new one.

Let me tell you what I've seen in the consumer market.

1) Computer is pushing 2 - 3 years of age. Games are starting to be slow, monitor is fading, or they have a CRT and want a LCD because it 'looks cool'

2) Compatibility isn't as big of a concern as it used to be. most of their apps either came for free (MS Works, MS Word) and they don't care about them too much.

3) Educational titles such as the Jumpstart things for the little ones run on both Mac and Windows.

4) High speed internet or regular internet plugs in and works.

My sister is my example. She had a Compaq Presario they bought in mid 90s and then another one they bought in late 90s. She has since gotten a nice video camera and had nothing but grief with trying to send her husband DVDs of her boys (he is in Afghanistan) for about 4 months. I told her about iMovie (she asked me where my videos were coming from we sent the family) and iDVD.

She got her 17" iMac yesterday. You want to know something funny? First words out of her mouth was God this is fast! (She had a AMD Athlon 1900XP I put together for her).

The problem with the market share numbers that I have being tossed around in this thread is that they are

1) WW numbers. If Apple doesn't sell into one or two regions it skews this number way down

2) include every freaking intel chip machine ever sold from one for $499 with 1 low cost low power chip to one with 32 of the $4000 ea chips in it.

3) Apple is making a huge profit compared to the rest of the makers. Some of those folks would dry up and blow away if business downturned for maybe a quarter. Apple obviously won't because their margins are higher and they can whether storms.


My other big beef with the thread is that people here seem to want to turn Apple into a PC company.

Whens the last time something cool came out of a PC company? The best thing a PC company could say is 'we came out with this model first' because shortly afterwords everyone else has the same gadget.

Dell has variety, they can sell you a 18", 23" or 30" Television now. woo hoo. Guess what makes them money, not their computers that is for sure.

The thing about a game changing technology companies is that THEY DON'T DO WHAT EVERYONE ELSE DOES, THAT'S HOW THEY CHANGE THE GAME

My $0.02
 
Originally posted by 1macker1
I dont see how owing an iPod would drive a person to buying a Mac. When I bought my iMac a year ago, i was stunned by the look, feel, and quality of the machine. And i liked os X. Apple hasn't done much to stun me as of late. It seems like all their new products are just things to yawn about.

I bought an iPod, then I bought a Powerbook g4 12". Worked for me, and if it works for oh - 10% to 15% of the user base of the iPod it's a success.

As far as yawning, have you *looked* at a PC recently? Show me one that isn't expensive & looks different other than the color the case is painted?
 
My Rant

Why did I get into computers?

Gaming......actually Doom on PC to start with, but I was an ATARI ST user before that, mostly using Notator. I grew up playing pong Galaxia, Frogger, Space Invaders, Pacman, Mrs Pacman (hotty), that centerpede game with the ball.....sigh the memories.

So what is my choice of gaming platform? W2K. What is the machine I produce and compose music on? Well that is my G4 OSX 1.25 and LAP6.3.3.

Now I don't want to mention the obvious, but until you can buy games on a Mac (yeah ok you can buy SOME) forget getting more of a market share.

Look at all the games coming out, and I can think of only one BIG game that will be on Mac - Doom3. Now just to remind that you will NOT be able to play HL2, Far Cry, STALKER et el. At this point the fact that you have a great OS, means nothing to the gamer.

Microsoft have recognised and support the gaming community, they have released the Xbox, (which I too own) and have placed a great deal of importance on developing and improving Directx etc. Lets face up to the fact that many many people buy computers to ENTERTAIN themselves. People however that have more of a critical task or specalist task buy Macs, which is great but stupid too.

So basically it's not what OS you have it's what OS you need to run your apps. Of the games I recently bought NONE were available for OSX.

BTW I see a few pathetic comments regarding windows 2000 or XP, as a seasoned OSX, W2K and XP user, I just want to say that they ALL have good AND bad points.

The reality is that Apple needs to get with the current and growing trend of increasingly wealthy gamers who like myslef spend buckets of money on hardware and software each year. How can you expect users to support a platform that doesn't offer the same software...duh... it's so simple, even I get it. :rolleyes:

sonicbaz
 
Re: Re: Re: Re: Re: It's Market Share, stupid. No, profits. No, Market Share.

Originally posted by Trekkie
My sister is my example. She had a Compaq Presario they bought in mid 90s and then another one they bought in late 90s. She has since gotten a nice video camera and had nothing but grief with trying to send her husband DVDs of her boys (he is in Afghanistan) for about 4 months. I told her about iMovie (she asked me where my videos were coming from we sent the family) and iDVD.

The fact is that if more people were like your sister iMac sales wouldn't be in the toilet.....which they are.

iMac/eMac sales: 227k units
Year-over-year: -24%
Quarter-to-quarter: -10%

So you can make all the arguments you want, but the market has already spoken.
 
Re: Re: Re: Re: Re: Re: It's Market Share, stupid. No, profits. No, Market Share.

Originally posted by DGFan


It's funny that comparisons are often made to luxury car makers. Isn't it ironic then that most of the luxury car makers (Porsche, BMW, Mercedes) that Apple is compared to are actually releasing cheaper vehicles to try and expand their marketshare?



Yeah, these car manufacturers are releasing cheaper cars. But how much cheaper? Can you buy the cheapest BMW for the price of the cheapest Nissan? I don't think so. Why? Quality and premium (the latter really important for public image). If Apple starts selling certain Macs at the same price as the cheapest PCs, they will no longer give out the image that their product quality is superior to that of Dell's, for example, accross the line (whether it's true or not is a different issue!). And that would put the religous followers of Apple off to no end. And those followers are, after all, what kept Apple in the business.
So doesn't that suggest that Apple is infact comparable to a company like BMW?
 
Originally posted by Dont Hurt Me
actually not 1 guitar center in my state and the one comp usa is a 4-5 hour drive. again Apple has forgotten consumers going to consumer stores. consumers out number all those otherthings everyone is talking about. they are not interested in selling computers to consumers.

Could you clarify that? I don't quuite understand. Are you saying that Apple has no interest in selling computers to consumers?
If that is the case, who have they been selling to? I thought their sales figures for corporations was what was always low, and that the consumer market was doing better all the time.
 
Jobs statement contradicts what the company is doing in some ways. They sell most of their products at the highest profit margins and they don't advertise anything but the iPod, their least expensive product with the highest profit margin. And it is not even a computer so that means no real increase in marketshare.

You can't argue that they don't innovate, but it doesn't look to me like they are trying hard to gain marketshare. Not in the way I usually think a business would try to gain marketshare, like advertising their products. They think that free publicity is the only advertising they need.

The days where most people would pay thousands of dollars for a computer are over. When is Apple going to see that. I guess if they have problems keeping up with demand now imagine how hard it would be for them if they sold as many Macs as Dell does PC's every year.
 
But here's my real problem with Jobs. First, he says (in the article that leads into this thread) that Apple made the critical mistake of focusing on profits instead of Market Share during his absence. Then, in this Business Week article, he says exactly the opposite:

"Judging from Jobs's comments, he has no intention of letting Wall Street down.But he wouldn't mind if those analysts would start measuring the Mac by the profits it produces, rather than by its market share. "We've got 25 million customers that want the best computers in the world. If our market share grows, we're thrilled. But we've held our own, while our rivals were losing hundreds of millions of dollars a year," he says. "We're in pretty good shape." "

So which is it, Steve? You can't have it both ways.
I think Steve Jobs' first quote (the one that started this thread) is being misunderstood. For a company to be successful over the long term it needs to ensure that its profit margin is in line with consumers' perceived value of the product. I don't think Steve meant that Apple should have gone for marketshare by competing on price. I take Steve's comments to mean that Apple's profit margin on products was too high comparison to the value consumers placed on Apple products, and that the profit margin should have been adjusted downward somewhat to meet consumers' expectation of the value.

Today, consumers are extraordinarily frustrated with cumbersome Microsoft products that frequently fail, are costly to maintain, and cause severe headaches for both consumers and businesses. In this changed environment it's easier for consumers to see the value of switching to Apple, and Apple is maintaining a profit margin in line with that value. Apple can slowly grow its marketshare AND make a reasonable profit.

I don't expect to see Apple competing on price (hence, an iPod mini that turns out to be quite popular despite its $249 price tag), but rather shrewdly determining price points based on consumers' needs and desires.

I think the BMW/Mercedes analogy is pretty good... although I think Apple's goal is to be more accessible to consumers. BMW's and Mercedes' aren't overpriced... people get what they pay for and the market is "big enough" to be sustainable. Today I think we're seeing Apple reposition itself to do the same thing, but for a moderate price.
 
Originally posted by Dont Hurt Me
actually not 1 guitar center in my state and the one comp usa is a 4-5 hour drive. again Apple has forgotten consumers going to consumer stores. consumers out number all those otherthings everyone is talking about. they are not interested in selling computers to consumers.

You do realize that they are opening up Apple stores in some places, right? And that they are trying out a program in some Best Buy stores (before deciding whether to expand it), right?
 
Re: Re: Re: Re: Re: Re: Re: It's Market Share, stupid. No, profits. No, Market Share.

Originally posted by junior
Yeah, these car manufacturers are releasing cheaper cars. But how much cheaper? Can you buy the cheapest BMW for the price of the cheapest Nissan? I don't think so. Why? Quality and premium (the latter really important for public image). If Apple starts selling certain Macs at the same price as the cheapest PCs, they will no longer give out the image that their product quality is superior to that of Dell's, for example, accross the line (whether it's true or not is a different issue!). And that would put the religous followers of Apple off to no end. And those followers are, after all, what kept Apple in the business.
So doesn't that suggest that Apple is infact comparable to a company like BMW?

How convenient that you left out the next part of my post.

Apple can build a high quality usable system that still sells for more than their competitors and gain marketshare in the process. The problem is Apple is too far from the sweet spot.

Did you not read that far? Something tells me it would be more constructive to read the post as a whole instead of picking on piece and responding to it.

See, the difference between a $50k Mercedes and a $20k Honda or Ford was too much. So Mercedes has worked its way into the sub-$30k market. They are still a premium brand but at least they have offerings in the same price-range now. Apple isn't in the same price-range yet for the consumer desktop.
 
Originally posted by reyesmac
Jobs statement contradicts what the company is doing in some ways. They sell most of their products at the highest profit margins and they don't advertise anything but the iPod, their least expensive product with the highest profit margin. And it is not even a computer so that means no real increase in marketshare.

This is true. Several Apple spokespersons have now made statements indicating their current product-line needs to be expanded toward the lower end. So the question is, are the statements just marketing fluff to make people think Apple has (or is) changing? Or are they a real portent of things to come? I guess only the insiders know for sure....
 
Re: My Rant

Originally posted by sonicbaz
The reality is that Apple needs to get with the current and growing trend of increasingly wealthy gamers who like myslef spend buckets of money on hardware and software each year. How can you expect users to support a platform that doesn't offer the same software...duh... it's so simple, even I get it. :rolleyes:
the reality is that apple is not responsible for the fact that software companies are not doing the coding quickly. its slighlty catch 22 actually. they wont code quicker until there is more market share, and there wont be more market share until they code quicker.
 
it seems like balance is the key. Yes his statements contradict...marketshare is better, no sales, no profits, no innovation...they really are all important at the same time. each are vital and balance between then seems to make a successful company. if company is all marketshare it can go under cause they can lose money to an upcoming company that is more innovative...or vice versa. also if you have poor marketshare but good sales and profits your doing well and consequently your company will experience small BUT healthy growth in marketshare
 
Re: Re: Re: Re: Re: Re: It's Market Share, stupid. No, profits. No, Market Share.

Originally posted by DGFan
The fact is that if more people were like your sister iMac sales wouldn't be in the toilet.....which they are.

iMac/eMac sales: 227k units
Year-over-year: -24%
Quarter-to-quarter: -10%

So you can make all the arguments you want, but the market has already spoken.
The iMac is a nice machine but it is far too expensive considering you're stuck with the screen attached to it and it can't really be upgraded. The 20" iMac was a mistake in my eyes - solely there for bragging rights. The screen on that Mac costs more than the computer that's attached to (and stuck with) it. It's a bold investment, considering you can't uncouple the screen.
 
Back when the clones where sold and Steve was out of the picture, Mac compatibles sold from $1,500 to $4,000 give or take a few hundred. That is not much different than how we have it today. How come? Would you buy a PC at late 90's prices? If they have not figured out how to make a cheaper system by now that means they are not looking to make one, period. They are trying to find a different way of selling more than the competition.
If Apple is charging high end PC prices on their lowest end systems, those systems need to offer high end PC hardware features, not just a bunch of free iApps. But they can't because it would make Apples high end machines look less powerful. I really don't know what Apple can do to gain market share if they keep these price/power gaps between their lines. They should offer the same speed all around in different upgradable/design configurations.
 
So what do I buy?

Originally posted by Trekkie
You're thinking like a person that has owned a lot of computers, not a person who wants a new one.

Let me tell you what I've seen in the consumer market.

1) Computer is pushing 2 - 3 years of age. Games are starting to be slow, monitor is fading, or they have a CRT and want a LCD because it 'looks cool'

My other big beef with the thread is that people here seem to want to turn Apple into a PC company.

Whens the last time something cool came out of a PC company? The best thing a PC company could say is 'we came out with this model first' because shortly afterwords everyone else has the same gadget.

Dell has variety, they can sell you a 18", 23" or 30" Television now. woo hoo. Guess what makes them money, not their computers that is for sure.

I'm not looking to turn Apple into a PC company. But consider my situation:
- In 1999 I bought my first Mac. At the time USB film scanners were not available, and digital cameras were still either $20,000 machines or 1MP toys. I bought a 300 MHz B&W G3 and a used screen.
- In 2000 I replaced the screen with a 19" CRT that can do 1600x1200 very well. I love resolution.
- In 2002 it was time to upgrade. I really loved the way the iMac looked, but the 17" model cost $400 more than a dual 867MHz G4. I would be getting less resolution and less speed for more money. I bought the tower, even though I don't need the expandability any more.

- In late 2004 or in 2005 I'll probably want a new computer. What should I buy? The 20" iMac looks like what I'm looking for, but will it be fast enough to justify replacing my dual? The resolution will still be less than I'm used to, so why replace the screen that works so well? The low-end PM would probably still be cheaper, althogh I need neither the extra speed nor the expandability.
If I buy the iMac, 3 years later I would want to replace the computer, but have to spring for a new screen too?

Between the iMac and the PM, it doesn't look like Apple has something that's right for me. I don't believe I'm that unique.

A headless iMac (cube? hemisphere?) plus a 20" LCD all for say $100 more than the 20" iMac would be a much better fit for me, even if it entails having one more cable on the desk.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.