mrblah said:
Well go and tell that to Dell and their massive market share and we'll see if they take you seriously and change their marketing strategy. Theres ideology and then theres reality, I suggest you take a trip into reality. People may think Apple is innovative but so what? Most people buy whats cheap, not whats innovative, and since Dell isnt innovative in anything they do they can afford to be cheap. We have solid proof that innovation doesnt sell as well as affordability, what is there to argue about exactly? I think Apple is perfectly fine with having such a tiny market share especially since iPod is keeping them afloat (how many billions does Jobs need? Hes probably in no rush to make mroe money), but if Apple fans expect Apple to try and get more market share then they should expect them to lower their prices and offer things like Dell.
This is why I'm not too concerned about Apple getting Dell-like levels of marketshare.
I see value in both Apple's hardware and their software. In fact, I see more value in the software than the hardware. However, they make most of the money from the hardware, so in effect I'm helping the continued development of Apple's software with my hardware purchases.
If Apple sold machines for Dell prices, they'd only be able to afford to produce machines and software like Dell. Goodbye iWork, OS X, CoreVideo, xnu, Darwin, Quartz, Cocoa, Carbon, Xcode, Filemaker, Safari, iChat, Final Cut, Aperture, iMovie, iDVD, QuickTime, GarageBand, AppleScript, Compressor, Motion, Soundtrack, Logic, Shake, Xsan, WebObjects, ARD, iTunes... Most of these products existed pre-iPod. Heck, the money for iPod development probably initially came from Mac and software sales.
Some of Apple's business does intersect with Dell's, but I don't think it's fair to compare the companies as a whole directly. What's good for Dell isn't necessarily good for Apple. Dell's business is low-margin, high-volume and is specialised(*). They integrate components, and shift boxes. If what you need is a box of parts that'll run Windows, then Dell's a good place to buy. But for a sizeable number of people (over a million per quarter), Apple's a better fit.
A 'large' market share isn't ideal for Apple's business, simply because of the concessions required to reach it would kill the company. What's ideal is a sustainable market share. I think they've got the strategy right: keep developing products which are attractive, price them according to the balance between customer acceptance and fiscal needs, and (above all) simply be around to provide a good platform which is self-sustainable.
Most people may well buy cheap. But there's a market for Apple's products, and it's looking stable, with signs of measured growth. Sounds good to me.
(* - it may seem odd to call Dell's products specialised. But they are. Dell's basically a one-trick pony. Their business model allows little else. Consider how long it took them to consider AMD processors. The contemporary wisdom has been that the reason was twofold. Firstly, they were quite likely getting superb prices for Intel processors, and advertising money from Intel that may have been threatened by including AMD models. But also, it was noted that adding AMD machines would introduce an amount of complexity to Dell's supply chain management that could impact their margins. They had to wait until the potential market for AMD-based Dell machines was guaranteed to be large enough that it would offset the costs of diversifying. Dell has very limited flexibility. It has historically worked for them, but investors have been twitch recently over multiple profit warnings from the company)