Mac dominating PC profits?

Discussion in 'Apple, Inc and Tech Industry' started by KingCrimson, Oct 10, 2011.

  1. KingCrimson macrumors 65816

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    #1
    I read somewhere that Apple makes 90% of profits on PCs priced $999 and above. Apple's only sub-$999 entry is the Mac Mini which is probably not a huge seller. What I'd really like to know is what are total industry PC profits on sub-$999 and above-$999 to get a fuller picture of how important that 90% stat is.
     
  2. AppleScruff1 macrumors G3

    AppleScruff1

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    #2
    Windows pc market above $1000 is small compared the lower priced segment. I wouldn't be surprised if Apple makes 90% of the profits in this market, it is more of a niche and they own it.
     
  3. boss.king, Oct 10, 2011
    Last edited: Oct 10, 2011

    boss.king macrumors 68040

    boss.king

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    #3
    That's kind of hard to measure though. What about custom builds and computers that are slowly upgraded over time? That only really takes into account pre-built computers, and for PC users they shouldn't really bother with pre-built machines most of the time.
     
  4. KingCrimson thread starter macrumors 65816

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    Considering Apple's explosive net income growth SINCE the unibody Mac was released I have to think that they have single-handedly GROWN the premium market!
     
  5. boss.king macrumors 68040

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    #5
    It still ignores a large chunk of the premium PC market though. It's not really something that can be fairly measured.
     
  6. *LTD* macrumors G4

    *LTD*

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    Apple owns the $1000+ segment. This has been known for a while now.
     
  7. boss.king macrumors 68040

    boss.king

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    For once I agree with what you say. It's only a matter of "by how much?". That said, it's still not really a fair measurement, as I explained above.
     
  8. AppleScruff1 macrumors G3

    AppleScruff1

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    It's true for over the counter notebooks, but what about custom built desktops?
     
  9. *LTD* macrumors G4

    *LTD*

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    You mean the stuff that retailers can barely sell these days, or the stuff that you build yourself (that the bulk of the market doesn't actually care about)?

    "Custom built desktops" are the niche end of a shrinking market segment.
     
  10. boss.king macrumors 68040

    boss.king

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    Custom built desktops are the smart way to buy a computer. You pick your parts, and have them assembled, or put them together yourself if you have an hour to spare. It's actually what many businesses (at least many I know) do, they have a horde of purpose built machines made.

    I'm not going to debate the numbers, because I really don't know them, and I doubt you do either.
     
  11. Hellhammer Moderator

    Hellhammer

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    #11
    Exactly. It's not just the self-built PCs, there are many companies which sell custom built rigs. Those aren't branded so that are not included in the sales numbers. Pretty much any decent gaming desktop fits in the +$1000 category. That's not a small number.

    Besides, profits are misleading. It doesn't mean that Apple is dominating the market. It means they have the highest profits. Not surprising given that PC with similar specs can often be had for hundreds less.
     
  12. AppleScruff1 macrumors G3

    AppleScruff1

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    I'm sure that you wouldn't be able to build your own computer, but many people do. You better stick to the bulk of the market. It's easier.
     
  13. MacHamster68, Oct 11, 2011
    Last edited: Oct 11, 2011

    MacHamster68 macrumors 68040

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    yes Apple owns that market above $1000 true because most consumers are not really interested in that premium market , that doesn't mean they would not want a Mac , they are just reluctant to pay the price to get the same hardware inside ,i ignore the diplay in the iMac as AIO computers make only a small proportion in the consumer market anyway due to their unabgradeability , ok Apple does well in the US market with 15% marekt share ,but only because thats where Mac's are sold dead cheap compared to the rest of that world which is paying usually around 30-40% more for the same Mac
    Worldwide Apple is ranking behind HP, Dell,lenovo, toshiba, ....i think at ranks above 10 you find Apple somewhere
     
  14. GermanyChris macrumors 601

    GermanyChris

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    #14
    Not really, If you go to the apple reseller hereyou'll find it's pretty much dollar to euro...$1199 13" is 1199 euro..so 20% to 30% more and thats including the VAT. Most computer parts are the same way which is a pain for me as I earn in dollars but live on euro's.
     
  15. MacHamster68 macrumors 68040

    MacHamster68

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    #15
    ok ok i altered it as it got better seems Euro and Pound gone down a bit in value or the Dollar up since last time i checked it
    Oha getting payed in Dollars and living in Germany thats hard , you got my sympathy
    but € 1199 are ~$ 1630 and thats ~35% more
    £ 999 are ~$ 1560 and thats ~30% more

    but i dont earn 30%more for the same work either
     
  16. thejadedmonkey macrumors 604

    thejadedmonkey

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    #16
    I'll give you an easy way to tell. Look at Dell's profits. take 10% of that. That's what Dell makes on the over-$999 market. Again, if you look at Apple's PC profits, take 90% of that, and you get Apple's profits. That should give you a (rough) fuller picture of how important that 90% is.

    Except for one thing. It's damn near impossible to find a PC that costs over $999. Most Dell's/HP's/Toshiba's, etc, from Best Buy are sub-1000, with better than MacBook Pro specs. Heck, I bought a Dell WITH a 2-year, on-site warranty with better-than-Macbook Pro specs, for less than $999.

    10% is basically a rounding error, and if you approach it that way, you should be able to see just how much Appple p0wns - not the over$999 market - but the consumer in general.
     
  17. GermanyChris macrumors 601

    GermanyChris

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    #17
    But that percentage fluctuates..and you have to remember that price includes VAT and doesn't include sales tax in the states..VAT here is 19%

    as an American working under SOFA I don't pay VAT which helps the dollar/euro cause a bit.
     
  18. MacHamster68 macrumors 68040

    MacHamster68

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    #18

    i am self employed , so i dont really pay VAT either , but i just dont want to spend those amounts on a computer if its nothing special , i would never spend even £700 on a 27"iMac with the risk of having to return it several times until i get one that works like it should .
    I kow not every iMac comes with flaws , but if Apple wants to sell premium Quality to me , then something like that should not even happen once in a Premium product . I admit Apple has a Premium Design , and a Premium Price (above $1000 is classed as premium ) but the parts they use inside are not what i would call Premium , and as i like to upgrade there is only one Mac for me suitable that would be the MacPro ..the base model still has nehalems inside , not bad , but far from premium today and still sold for a premium price
     
  19. KingCrimson thread starter macrumors 65816

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    #19
    Except I've always bought Dell & HPs for over $1000. I guess I've always been in the premium market. Usually around the $1200 range.
     
  20. Hellhammer Moderator

    Hellhammer

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    #20
    It doesn't matter what you buy. The average consumer buys sub-$1000 PCs. Only a tiny share of people need more power (or other specs) than what those PCs offer.
     
  21. MacNut macrumors Core

    MacNut

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    #21
    Apple up charges for name and look. The majority of innards in every mac are the same in low end PCs. Most people don't want to pay extra for build quality or OSX. For most people a $500 computer is all they need to check email surf the web and write word documents.
     
  22. GermanyChris, Oct 11, 2011
    Last edited: Oct 11, 2011

    GermanyChris macrumors 601

    GermanyChris

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    #22
    I think I'd be patient with the Pro too..the update will happen and it might even get a new look in the process..I still don't think I'd buy a single processor Pro the price seems steep with those, but I think the dual processor Pros are competitively priced.
     
  23. KingCrimson thread starter macrumors 65816

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    #23
    Alot of PC buying decisions are based on how strongly you are tethered to certain applications. If you are heavily in movie-making endeavors you might be using Final Cut Pro and you will use a Mac for life. But you might be heavily tied into Office & Visual Studio development then you will be a Windows-user for life. That's just how it is for a lot of people. For the more average home user - they are not as tied into any ecosystem and have the freedom to choose based on aesthetics, user experience above functionality.
     

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