Originally posted by the_mole1314
As said before, market share and unit sales mean nothing in comparison to per unit capita, and Apple is the leader. Dell would have to sell more units to recoop as much as Apple does with one sale. As for flat sales, ever heard of the thing called the iPod? You know, that little white thing that you couldn't find this past Christmas? The one that is nearly $50 profit per unit? If you think unit sales are down, you need a reality check.
I'd hardly call Apple treading water. Gateway, now, they are treading water.
i really don't understand why internet users can't show common courtesy when posting to message boards, there was no need for sarcasm.
first let me say this isn't meant to be an attack on apple, i think they're doing a great job and i don't care if they make a $1 net profit per year, as long as i can keep buying apple machines.
to address your points though
i was speaking about CPU unit sales, i should have made that more clear. if you look at CPU unit sales, they are clearly flat year over year. yes, there are fluctuations both ways, but essentially apple shipped the same number of units this quarter as they did a couple of years ago.
as to profit per unit, obviously apple makes a significantly larger profit on their CPU sales than dell (keep in mind though that dell's 3rd quarter earnings were 10.6 billion dollars though, so per unit profit or no, dell's making a hell of a lot more than apple), that does not change the fact that apple has failed to measurably increase their market share for one reason or another. you can't for a single second tell me that everyone at apple would kill for more market share. at a very simple level it comes down to, double your unit shipments and double your profit. in fact double your shipments and increase profits by 250%, buying bigger lots of materials gets you a bigger discount, or pass along the savings to your customers and potentially attract new customers, double your market share again and repeat the whole cycle.
little of this has to do with my point though, what i was arguing was that apple has failed to connect with middle america. subsequently they have failed to attract significant numbers of new users to the platform. with the ipod they have the chance to remedy that mistake and by all outward appearances are managing to do so quite well. perhaps most brilliantly they are doing so without affecting their core brand by using other companies to market their wares (e.g. pepsi and hp). if apple can maintain that momentum and sign up a few new partners the i believe they will be the microsoft of digital music no later than the end of 2005.