My question is you can build a better mouse trap but people do not want to change over from something that works. And for proof we have to look no farther than OSX.
OSX is better than windows. Yet after what 8 years of it being out it still ONLY has 6-7% market share.
OSX is better than windows yet windows controls nearly 90% of the market share.
But asking an apple fan to see this little fact it like asking a blind man to pick out a 1 green apple amount 100's of reds.
Apple functions at the Premium end of the market. It isn't one big market. There are levels to it. There are consumers in particular income brackets that are locked out of Apple's demographic. This is one of the defining characteristics of any Premium product. And Apple rules the Premium end. If a consumer has $1000+ in their pocket, chances are a Mac will be at or near the top of their list. That's quite an accomplishment.
Apple deliberately, and this has been stated numerous times by Jobs and Cook et al, does not license their OS out to everyone and their dog, and they deliberately choose to stay out of the low end, and even shun a good portion of the mid-end.
There are between 50-70 million Mac users. The Mac is understood as, and marketed as, a Premium product. Fewer units sold, but at much higher margins. Apple has stated quite clearly that they refuse to operate at the low-end. This means they provide a vastly different (and very attractive and coveted) user experience that people (who are able to) are willing to pay more for. Apple would not cheapen or muddy its brand image by competing on the same level with the likes of Dell, for example. Either you differentiate yourself via some clear, desirable, distinguishing features, or you compete on price like the rest of the pack.
This is what has Microsoft acting so defensive: Windows still has overwhelming unit sale market share, but it is now almost entirely at the low end of the market.There are substantial implications to Microsoft under these circumstances. Just one of the reasons they are opening these Stores. MS is trying very hard to shed its bargain-bin image. A bit late for that, though.
"Market Share" is very often misunderstood. With a fraction of Microsoft's market share, Apple is not only thriving, but it also is in a position as:
1) The industry innovator
2) The most powerful brand in the industry today
3) Producer of the most coveted notebooks and devices in the industry today
4) The one to follow. Apple does everyone else's R&D for them (apparently.)
So when you discuss "market share", you need to determine exactly which end of the market you're talking about. The lion's share of what part of the market? The Premium end of the market pyramid is near or at the top. It's much more narrow, but the consumer approaches tech (and other products) from an entirely different perspective (often not on price), with difference epxectations that Apple happens to cater to. Ideally, you WANT to rule the Premium end. It's these customers that build your brand, that make it desirable, and that will pay top dollar for what you provide.