“The Windows PC market is contracting. The market data has been showing unit shipment declining for some time with the latest quarter having perhaps the steepest decline for two decades,” Horace Dediu reports for Asymco.

“What remains undocumented however is how the market looks when considering economic value. A more complete picture would be to show revenues, average selling price (or revenue/unit), operating margins/unit and percent of profit capture,” Dediu reports. “The only inference I made was with respect to Apple’s margins for the Mac. These are based on deriving a gross margin of 26% and adding an estimate of the SG&A and R&D “overhead” of 7.1% of sales, a figure which applies to the entire company. This yield an operating margin of 18.9%.”

Dediu reports, “If this estimate is considered then the operating profits from PC operations imply that Apple generates more profit than all the top 5 PC vendors combined. Assuming further that “other” vendors have the same profitability ratio as the top 5 combined yields a figure of 45% ‘profit capture of PC market’ for Apple. This is not as good as its performance in the phone market, where Apple has about 72%, but it’s not bad.”

Read more in the full article here.

MacDailyNews Take: So, who won the “war,” again?

As we have always said, even as many short-sightedly waved (and continue to wave) the white flag, the war is not over. And, yes, we shall prevail… No company is invincible. Not even Microsoft.MacDailyNews Take, January 10, 2005

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Gartner: PC Market posts 11.2 percent decline in Q113; Apple Mac sales up 7.4 percent in U.S. – April 10, 2013
IDC: PC shipments post the steepest decline ever in a single quarter, down 13.9% in Q113 – April 10, 2013