Apple's U.S. Market Share Continues to Grow

[BongoBanger]

I don't know where you are getting information about global sales, or why you are pulling this into the discussion, since this article was about US sales only, which is the basis for my points. As for "saturation" I don't think this is much of an issue. The Windows PC market is plenty large, sufficiently large such that Apple doesn't need to steal much of it away every quarter to continue to grow their share. For the last few quarters, Apple has been garnering more the half of the total unit growth in the US.

The article quotes that Apple has failed to break into the worldwide top 5. I'm explaining why this is.

I have absolutely no disagreement with the fact that Apple are increasing their share of a saturated market at Windows expense, however my points are:

1) This expansion will inevitably hit a ceiling, and
2) The same logic doesn't apply to global sales where the market isn't saturated.

 

[maelstromr]

Despite the EU being the biggest economy in the world?



And the US when you count all of its federal states. Well, with the possible exception of California that is.



Mainly because our biggest countries are about one fifth its size. That's why we have the EU.



Really? Microsoft and HP didn't seem to have a problem.

Congratulations. Your post is the probably the most ill informed I've read to day.

Good understanding of Federalism.

EU = mis-mash of poor and rich countries not working together and not having any significant standardizations collected together JUST so Europeans can use one currency and feel good about being big for the first time since colonialism.

US = one NATION where interstate trade crosses freely and with consistent standards over all state lines. Big in reality, on its own, in the present and still the center of global business.

 

[BongoBanger]

Good understanding of Federalism.

EU = mis-mash of poor and rich countries not working together and not having any significant standardizations collected together JUST so Europeans can use one currency and feel good about being big for the first time since colonialism.

US = one NATION where interstate trade crosses freely and with consistent standards over all state lines. Big in reality, on its own, in the present and still the center of global business.

You are aware that the EU has free trade and mobility of labour right? You're also aware that the US states have different state laws and taxes, right?

I'm not disputing the US is still an economic powerhouse but your lack of understanding of how the EU's economy works is pretty apparent.

 

[djlu]

1) This expansion will inevitably hit a ceiling, and
2) The same logic doesn't apply to global sales where the market isn't saturated.

By the way there are several stories reporting that IDC is saying that Apple is now no. 6 worldwide. I believe the paid version of the IDC report gives a larger breakdown of the companies both US and worldwide.

 

[BongoBanger]

By the way there are several stories reporting that IDC is saying that Apple is now no. 6 worldwide. I believe the paid version of the IDC report gives a larger breakdown of the companies both US and worldwide.

I'm pretty sure it is. However, that market share is still likely to be less than 4%.

 

[maelstromr]

You are aware that the EU has free trade and mobility of labour right? You're also aware that the US states have different state laws and taxes, right?

I'm not disputing the US is still an economic powerhouse but your lack of understanding of how the EU's economy works is pretty apparent.

Buddy, the discussion is about the expansion of Apple Computer's marketing efforts and market penetration, remember? Go refer to the iTunes and iPhone experiences in Europe (and the continuing lack of standard application in all nations) for examples of how badly Europe is set up for this kind of thing. I think I already made that point...

 

[BongoBanger]

Buddy, the discussion is about the expansion of Apple Computer's marketing efforts and market penetration, remember? Go refer to the iTunes and iPhone experiences in Europe (and the continuing lack of standard application in all nations) for examples of how badly Europe is set up for this kind of thing. I think I already made that point...

The discussion is about market penetration but then you went and made a lot of ignorant conjecture about an economy you don't understand. As for iTunes, it's standardised in nearly all countries that use the Euro at 0.99e per track. Other countries like the UK charge differing amounts because they don't use their own currencies. However, the service exists in every European Union country.

As for the iPhone, it was released on different carrier networks - Telefonica O2 in the UK, T-Mobile in Germany and Orange in France which is rather why it had different conditions in the same way AT&T has different conditions from, say, Verizon or Sprint.

Now do you want to stop there or do you want to keep digging a hole for yourself?

Apple actually have a pretty good presence in the EU in terms of sales. Not as good as the US but not far off it.

 

[djlu]

I'm pretty sure it is. However, that market share is still likely to be less than 4%.

True but I think in 2002 they were less than 2% worldwide. I think as they open more Apple Stores it will help in those countries.

I don't think however that they will ever have a significant share of developing countries becuase of price. I imagine their India, China and Brazil market shares are probably under 1%.

 

[maelstromr]

The discussion is about market penetration but then you went and made a lot of ignorant conjecture about an economy you don't understand. As for iTunes, it's standardised in nearly all countries that use the Euro at 0.99e per track. Other countries like the UK charge differing amounts because they don't use their own currencies. However, the service exists in every European Union country.

As for the iPhone, it was released on different carrier networks - Telefonica O2 in the UK, T-Mobile in Germany and Orange in France which is rather why it had different conditions in the same way AT&T has different conditions from, say, Verizon or Sprint.

Now do you want to stop there or do you want to keep digging a hole for yourself?

Apple actually have a pretty good presence in the EU in terms of sales. Not as good as the US but not far off it.

AT&T is the ONLY iPhone carrier in the US.

The IMPLEMENTATION of iTunes and iPhone were neither smooth nor standard, whatever the state years afterward. This is referenced in hundreds of news articles from that period. France's crazy IP regime alone nearly botched the whole deal. At least twice Apple nearly pulled iTunes from a couple EU markets.

EU economic standards are barely more than illusory promises, and have not panned out for most members. Especially when the most important piece of Europe (economically), the UK, is barely on board.

I state facts, and suggest evidence to back it up. You make obstinate statements because you read somewhere Europe as a whole has a significant economy and then throw out insults to cover for a lack of ability to make specific responses and resort to over-broad and irrelevant generalizations about the EU.

I understand it hurts your feelings, but the EU simply is not as good a market as the US FOR COMPANIES LIKE APPLE. Aside from the clear business choice Apple makes to throw its support behind US marketing over European, this is pretty clear from its presence in those places. Now, in all fairness apple's low market penetration probably has a lot to do with the significant number of depressed economies rolled into the EU with Germany et al and the 1990's level of computer technology laying around there, but I don't have anything to back that up. I'm sure there are lot's of Germans carrying around pretty Apples while they take care of their very important business in their very big cities.

 

[IJ Reilly]

The article quotes that Apple has failed to break into the worldwide top 5. I'm explaining why this is.

I have absolutely no disagreement with the fact that Apple are increasing their share of a saturated market at Windows expense, however my points are:

1) This expansion will inevitably hit a ceiling, and
2) The same logic doesn't apply to global sales where the market isn't saturated.

Everything hits a ceiling, but where and when? The problem with having a huge market share, as Microsoft does, is that everywhere you look, the direction is down. Apple has had upside potential for a long time, but they are only now taking advantage of it. I can see this trend continuing for a couple of years. It isn't unreasonable to imagine that the Mac might claim 15% or more of the US market within two years. It's been that high before.

 

[zacman]

As for iTunes, it's standardised in nearly all countries that use the Euro at 0.99e per track.

Actually that hasn't always been the case. Apple tried to charge different prices but was forced by the EU commission to change this because it violated the EU contract.

The EU commission even thought about forcing Apple to license protected AAC to third party hardware vendors for interoperability.

 

[FasterQuieter]

Slightly ahead of Acer. Whooptidoo.

 

[BongoBanger]

AT&T is the ONLY iPhone carrier in the US.

So we have more choice in the EU. Instant win.

The IMPLEMENTATION of iTunes and iPhone were neither smooth nor standard, whatever the state years afterward. This is referenced in hundreds of news articles from that period. France's crazy IP regime alone nearly botched the whole deal. At least twice Apple nearly pulled iTunes from a couple EU markets.

And yet it was implemented.

EU economic standards are barely more than illusory promises, and have not panned out for most members. Especially when the most important piece of Europe (economically), the UK, is barely on board.

Incorrect. The UK has signed up to the Treaty of Lisbon.

I state facts, and suggest evidence to back it up.

Really? Where exactly?

You make obstinate statements because you read somewhere Europe as a whole has a significant economy and then throw out insults to cover for a lack of ability to make specific responses and resort to over-broad and irrelevant generalizations about the EU.

It's actually the IMF that determines the economic worth of the EU. They determined it's the world's largest economy.

I understand it hurts your feelings, but the EU simply is not as good a market as the US FOR COMPANIES LIKE APPLE.

Well it doesn't bother me but you should know that Europe is Apple's biggest market outside the US accounting for about a third of Mac sales.

http://seekingalpha.com/article/85426-a-close-look-at-apple-s-mac-shipments

That fact kind of makes the rest of your post redundant.

Keep trying, you might get something right eventually.

 

[oldwatery]

WOW!
You mean Apple still makes computers

 

[PurrBall]

Wow. How much market share did Windows XP lose?

Probably the amount that Vista gained.

 

[28monkeys]

ACER is selling well among the grassroot to middle class income groups here in Thailand and SE-ASIA regional.

 

[DiamondMac]

Apple will continue to make strides as long as they continue making very good products like the iPhone, iPod, iMac, MBP, and other machines

I doubt Apple will reach some of the levels that many fanatics want people to believe but I do think we will see more increases the next few years as more people realize that Mac computers are stable, safe, and very easy to use

I see more Macs at school, at work, and just around then I ever have before and it grows

 

[beatledud]

#3?!!!

Do you hear that AutoDesk?!!! MAKE AUTOCAD FOR OSX!! Just so tough for architects who like Apple more but our industry is crippled to AutoCAD. Going to work each day and working on a PC is awful!

 

[Theserpens]

Well it doesn't bother me but you should know that Europe is Apple's biggest market outside the US accounting for about a third of Mac sales.

and Apple will never succeed in increasing its worldwide market share until it will lower the prices of its computer abroad. In europe the prices, also taking into account taxes, are regularly between 10 and 20% higher compared to the US. Europeans still consider Apple overpriced, and it's true.

You also see this effect with the iPods. The iPod market share of MP3 players is much lower in Europe compared to the US: iPods are also overpriced.

To save some money we have to wait for discounts on older versions after products upgrades or we have to buy refurbished products....

 

[donga]

i think apple will still grow in the US, but to get to #3 worldwide.... much tougher to sell cool and more expensive machines to countries/people that can't afford it

 

[Gasu E.]

Your points are valid. However, i gave Scotland as an example. It's where i live. I am not suggesting that Apple should spend $m in Scotland. But lots of little pieces make up one big piece.

One of the other huge problems is that average Joe sees the cost of an Apple product in US$, does a quick conversion, then compares it to the price he would pay for that device in his country.

MacBook price of $1099 equates to £548.99. But the UK price for the same item is £699. Average Joe thinks this is a rip off.

Actually, $1099 equates to £644, since you also have to add 17.5% VAT at your end to get the list price (as I recall, VAT is added before the advertised price in the UK). The $1099 does not include taxes, which get added when you make the purchase, since this varies by state. The remaining discrepency of about 8% can at least partially be accounted for by the recent fall of the dollar. I don't really see evidence of a large discrepency here-- maybe 5%; even that small amount couple be explained by differences in distribution costs. Am I missing something?

 

[Gasu E.]

The discussion is about market penetration but then you went and made a lot of ignorant conjecture about an economy you don't understand. .

Actually, it's hard to tell what the discussion is from your posts. I went back through the entire thread to find your original proposition, and I failed to find any. Mostly you seem to be randomly gainsaying Americans. Nothing wrong with that, but it's a bit unfair to expect anyone to argue effectively against your position when you never really stated what your position was in the first place. You seem to have a lot of facts at your disposal and probably have something worthwhile to say, but your presentation has been so incoherent that your point has been lost on this disinterested observer. Just trying to provide some constructive criticism.

 

[IJ Reilly]

Actually, $1099 equates to £644, since you also have to add 17.5% VAT at your end to get the list price (as I recall, VAT is added before the advertised price in the UK). The $1099 does not include taxes, which get added when you make the purchase, since this varies by state. The remaining discrepency of about 8% can at least partially be accounted for by the recent fall of the dollar. I don't really see evidence of a large discrepency here-- maybe 5%; even that small amount couple be explained by differences in distribution costs. Am I missing something?

I don't think so. Strong currencies do not produce instant discounts. Goods are priced in the markets where they are sold, not where they are manufactured. Exchange rates come into these calculations only indirectly, if at all. In fact you would not want a strong currency to produce instant proportional discounts on imported goods, as this results in deflation, which as economists will tell you, is a bad thing. And then of course, the opposite would have to occur when a currency is weak. Who would like to see automatic markups every time their national currencies hiccup?

 

[rockosmodurnlif]

Geez, even the Mac news posts turn into iPhone ads

But yea, I notice Dell and HP share went up as well.

...
By then, Mac OS X will be at 10.10, or dar I say, X.X!
...

You mean dead?

 

[christian_k]

So if you're looking for a sub $1,000 computer for your daily tasks, Apple does sell it: iPod Touch (€289 - €469) or iPhone (well under €600 in most countries).

No. iPod Touch cannot replace a computer. In fact you cannot do much with an iPod without having a computer. You cannot transfer your music CDs to the devie. You cannot transfer pictures from a digital camera to an iPod without a computer and you cannot edit your pictures on it. A touchscreen may be cool, but if you write mails, forum posts or texts for a blog then a real keyboard will do the job much better. Many broadband routers need to confgured over ethernet before WiFi access is possible, how do you do that with an iPod? How do you update your iPods firmware without a computer? How do you write and print an application if you are looking for a job - only with an iPod?

Apple does have a sub $1000 computer -> the Mini. I think for most users this computer is more than enough. But iPods or iPhones or Apple TVs cannot replace that.

Christian