Mac Marketshare Growth in High End Retail Market

[johnnyjibbs]

Apple's success above $1,000 defies some of the conventional retail thinking about PCs, where the emphasis is on lower pricing and greater features. "Consumers don't care about features," Stephen asserted. "People see a value proposition in an offering that gives them a great experience."

There is something inherently wrong with this statement. If you cut the price off at $1000, then the "cheap PC" statement is irrelevant, because the $1000+ "cheap PC" is most likely very niche (not to mention contradictory). What we need to know before these figures are useful is what percentage of the total market we are looking at. If the $1000+ market represents 1% of all computer sales, then this is a no s*** sherlock; if it represents a sizeable piece of the total market (in terms of volume rather than sales revenue) then there is something here.

 

[slapguts]

Seems fairly obvious to me, if you want to spend >$1000 for a PC, you'd rather build one from scratch. There is a HUGE industry selling PC parts, that doesn't exist with Apple.

If you want a bad-ass PC, you buy parts. If you want a bad-ass Mac, you buy a Mac.

 

[johnsy]

the funny thing is that the only looser is Pc manufacturers. Microsoft will loose OEM licensing income but will gain from people who still would like to have Windows and OS X on their macs.

 

[i0Nic]

Apple will not compete in the sub $1,000 market. Apple have high brand equity, pricing them to compete with low-cost manufacturers will only lower the market perceptions of premium quality and therefore lower brand equity.

Apple are not aiming to become the dominant leader in the overall PC market. They are happy growing their niche, and more importantly becoming a major player in the Post-PC era. As has been said, profit margins for low cost computers is not that great, the world of post-PC's is going to be huge and this is where the profits and leadership opportunities are.

 

[ralnar]

Comparing apples to pears.

Apple's 1000$+ desktop is iMac which includes a display. A comparable PC setup will contain a sub-1000$ PC and a display.

What's amazing is that Apple's share in the lower segment is 14%. Does the Mini sell that well, or are discounted iMacs included there as well?

 

[elgruga]

Enough 'headless Mac' crap, please.

Apple sell a computer for over a $1000 and they make the same profit as Dell do when they sell FOUR 'under $1000' pieces of junk.

Every time we have a section of people clamouring for some cheap 'headless mac' for $499 - Yawn.
BUY a Mac Pro - you can afford it, sell your mind-destroying 60" screen TV.

Get over this crap - Apple sells beautiful powerful machines for a premium - if you cant understand this, tough!

Jobs will NOT make a cheap machine - even the mini isnt cheap.

How can you argue with the PHENOMENAL growth and BRILLIANT products of this company?

But all I hear is the 'why cant we be like Dell' nonsense.
Dell is going DOWN. Is that what you 'headless Mac' crowd want?

Just to be clear here:

There is MORE profit in selling ONE Mac than there is in at least FOUR Dells.
GET IT?

Want a cheap Mac? Steal one - its the only way its going to happen.

PLUS: WHY do we have to compare the Mac with all the rubbish out there? If you buy a Mac you get OSX - no-one else offers this exceptional OS. Isnt that worth something?
Isnt the sheer pleasure of a great machine with the finest OS worth something to you?

You get the finest computer on the planet and then everyone wants it to turn into cheap junk.
BWAH!

 

[i0Nic]

Comparing apples to pears.

Apple's 1000$+ desktop is iMac which includes a display. A comparable PC setup will contain a sub-1000$ PC and a display.

What's amazing is that Apple's share in the lower segment is 14%. Does the Mini sell that well, or are discounted iMacs included there as well?

I think you'll find that many purchase sub 1K computers including a display.

That 14% figure is for *all* computers sold in retail chains, not the sub $1000 market.

 

[elgruga]

PC for over $1000.....!

The most surprising thing about this survey is that anyone is buying a PC that costs more than $1000. Are those people on crack?

Oh, gamers. Right.

So the answer is yes.

Ah, the funniest post by far!
LOL!

 

[n8mac]

Ot

...and besides, now I can use that money to bet on the Penguins to win the Stanley Cup!

You get the NHL in France? Nice. It's gonna be a brawl. Redwings all the way!

 

[BenRoethig]

So would the online and institutional sales help or hurt these numbers?

Hurt big time if you're talking total marketshare. These are only for brick and mortar retail stores. Any computer bought directly from the manufacturer is not included.

 

[BenRoethig]

Seems fairly obvious to me, if you want to spend >$1000 for a PC, you'd rather build one from scratch. There is a HUGE industry selling PC parts, that doesn't exist with Apple.

If you want a bad-ass PC, you buy parts. If you want a bad-ass Mac, you buy a Mac.

That and those who spend over $1000 on a computer usually don't go for a fixed retail configuration. Also, this counts the computer only, not any display you buy with it.

 

[BenRoethig]

Comparing apples to pears.

Apple's 1000$+ desktop is iMac which includes a display. A comparable PC setup will contain a sub-1000$ PC and a display.

What's amazing is that Apple's share in the lower segment is 14%. Does the Mini sell that well, or are discounted iMacs included there as well?

That's not in the sub $1000 segment, that's all retail computers combined.

 

[iTattoo]

Apple sell a computer for over a $1000 and they make the same profit as Dell do when they sell FOUR 'under $1000' pieces of junk.

Every time we have a section of people clamouring for some cheap 'headless mac' for $499 - Yawn.
BUY a Mac Pro - you can afford it, sell your mind-destroying 60" screen TV.

Get over this crap - Apple sells beautiful powerful machines for a premium - if you cant understand this, tough!

Jobs will NOT make a cheap machine - even the mini isnt cheap.

How can you argue with the PHENOMENAL growth and BRILLIANT products of this company?

But all I hear is the 'why cant we be like Dell' nonsense.
Dell is going DOWN. Is that what you 'headless Mac' crowd want?

Just to be clear here:

There is MORE profit in selling ONE Mac than there is in at least FOUR Dells.
GET IT?

Want a cheap Mac? Steal one - its the only way its going to happen.

PLUS: WHY do we have to compare the Mac with all the rubbish out there? If you buy a Mac you get OSX - no-one else offers this exceptional OS. Isnt that worth something?
Isnt the sheer pleasure of a great machine with the finest OS worth something to you?

You get the finest computer on the planet and then everyone wants it to turn into cheap junk.
BWAH!

The headless mac does not have be a "cheap" machine, just something to fill the cavernous gap between the mini and the mac pro. The argument is not always about price, it is also about already having a monitor and not wanting to buy another built into their machine. The opinions are clearly different from your beliefs, but aren't wrong ... just different. Choice and diversity are ok.

 

[ditzy]

The most surprising thing about this survey is that anyone is buying a PC that costs more than $1000. Are those people on crack?

Oh, gamers. Right.

So the answer is yes.

I'm not a gamer (unless you include sims 2 which I wouldn't) But you make gamers sound like a sub-species. You know there isn't anything wrong with being a gamer.
Also when I used pc's all of a week ago I always bought higher speced ones which tended to cost round £800 just for the desktop.

 

[Bubba Satori]

Second, everyone has another choice -- they don't have to buy a Mac.

Is that an attitude a company wants to foster when things are going well. These thing run in cycles, you know.

 

[iTattoo]

I am not TOO surprised by this.

After all, this doesn't include any online sales. I'd imagine, Dell, Gateway, HP, etc. sell the vast majority of their computers online and thus wouldn't be included in these statistics. Apple's retail presence is clearly superior to any of the other companies so obviously their marketshare would be superior to any other company.

Actually, Dell, Gateway and HP are well represented in places like Costco, BestBuy, and a number of other big box players here. Looking at the numbers posted by Apple for the last quarter, and only 20% of their sales (in dollars) come from the retail channel. The rest would be either online, phone, 3rd party resellers, and any direct selling such as the educational market.

You'll find the information here: http://www.appleinsider.com/article...om_apples_q208_quarterly_conference_call.html

Apple does have a fantastic retail presence in the most populated parts of the United States, but that's about it ... the rest of the world is slowly getting exposed to the B&M Apple presence, and I suspect that Apple has a long way to go yet in the premium market space.

 

[Bubba Satori]

Call me crazy but I don't think Apple wants every customer out there. I think the goal is to sell computers that are profitable, even if it means selling less profitable ones that "halo" into future purchases of more profitable computers.

Apple doesn't want the "mod" squad building Mac Pro Minis - Apple wants to present its all-in-one solution that works, leaving the variables and a fair chunk of potential "mod" customers out in the cold. Apple creates its own customer niche/base, and then tries to serve it 100%. Just an observation...

Not crazy at all. I think you've got it exactly right. And it's the reason I've come to the conclusion that Apple will never fill in the enormous price and feature gap between the Mini and the Pro desktops for those people who don't want their computer built into a glossy monitor. Ain't never gonna happen. As many on the forum have advised those who want an expandable, sub $1K headless desktop, "You don't have to get an Apple." That attitude may come come back to haunt them.

 

[kjs862]

I would like to see Apple come out with a machine, something along the lines of a Mac Mini Pro with a price of $799-$1099. I would think it would sell rather nicely.

 

[i.maverick]

Possibly.

I think what this shows is that if Apple wants to ever get to above 10-15% marketshare, they are going to have to compete in the sub $1,000 price range.

Either that, or somehow convince people who are buying the sub $1000 computers to buy $1000+ computers.

If Apple keeps doing well, they will have to compete in the $500-$700 market, because that will be where the rest of the customers are. Let's say Apple takes 100% of the above $1000 market. That still means Apple only has like 15% (a guess) of total PC marketshare. It's not like they can just say year after year, oh we're happy with 100% of the above $1000 market, and not go after the rest of the market.



arn

maybe that's why they are developing the touch platform so aggressively. they're gonna make people want to buy their computers (with the touch) and their mobile wifi platform (iphone and ipod touch).
and these figures, are they worldwide? apple has soo many more countries to break into.

 

[tpk2002]

"Consumers don't care about features"

Really? To get a "great experience" I think that requires at least a minimal amount of features. To just say consumers don't care about features, imo, is a bit irresponsible. Especially if I'm paying over $1000 for something I am going to use for hours a day, I better be getting something that is more than just "experience."

 

[PlayUltimate]

Useless statistics because of the sales that were excluded.

Agreed. Outside of Apple, I'm not even sure there are that many $1000+ systems in retail outlets . The Office Depot & Best Buy don't sell them in any volume. Those that need a good system or in volume go through direct purchasing or build your own.

 

[xnu]

I think the under $1000 market will be addressed by Apple soon (maybe by this time next year). People buying cheap computers are only surfing the web, getting email, maybe a few pictures... not really utilizing everything a computer is capable of doing. So that is where the larger iPhone comes in, surf, email... $750.00-$950.00. Accessories galore... keyboard, monitor stand... a host of great new applications with the new SDK, boom the consumer will be converted to OSX and not even know it, half appliance, half computer, all Apple.

 

[trrosen]

Steve knows retail

But i still want my megamini.

oh and a mega Apple TV too one with a tuner and DVD drive....maybe with a nice Atom processor.

 

[Shasterball]

One long term question becomes whether or not the saturation of their target market ($1,000+ computers) will limit Apple's future growth. If more customers aren't attracted to this high-end market over time, Apple's Mac sales growth will necessarily stall.

Well, I think more institutional/enterprise consumers will be, slowly but surely, going to Apple computers -- with the transition maybe catalyzed by enterprise iPhones? Then we will need a survey that takes into account online sales.

 

[stiles]

But really, let's be honest. If apple had a mid range upgradable tower, who would buy the mac pro?