“According to Gartner, Mac market share increased from 5.1% in 4Q 2006 to 12.7% in 2013, whereas its global ex-U.S. market share went from 1.15% to 3.68% over the same period,” Research and Value writes for Seeking Alpha. “This has been an exceptional performance by the Mac division despite well publicized in the press challenging overall PC market. A more qualitative sign of the strategy working with respect to Mac division, is the so called Halo effect, to which the management has referred to multiple times. Halo affect means consumers purchasing multiple different Apple devices after they have purchased one. For example, once a consumer gets introduced to iPhone, she may then decide to also purchase Mac, or vice versa.”
“Despite rather difficult PC environment, Mac has done quite well due to its market share gains, while also stemming ASP decline since 2009,” Research and Value writes. “Therefore, key question here is, how will Mac market share dynamic develop say over the next 5 years?”
“Given the new Mac operating system Yosemite, which focuses on better integrating iPhone, iPad and Mac experience, it is possible that Mac market share gains may actually accelerate. Furthermore, computer operating systems have a tendency of gaining momentum, as their adoption spreads,” Research and Value writes. “Mac could generate incremental revenue run rate of $7.7BN to $14.9BN… These figures would mean a 34% to 67% growth of Mac revenue in 5 years, to an annual total Mac revenue run rate of $30BN to $37BN.”
Read more in the full article here.
MacDailyNews Take: Continuity puts Apple’s Halo Effect on steroids.
I love it when a plan comes together. – John “Hannibal” Smith
Props for the “A” Team reference
I pity the fool
I was looking for the quotation from Steve Jobs where he said to build the best possible device, not worry about profits; and the rest will take care of itself. Instead, I found this from an Apple press release back in 1996, almost twenty years ago:
Apple Computer, Inc. Agrees to Acquire NeXT Software Inc.
Acquisition Confirms New Open Apple; Steve Jobs Returns to Apple; Complementary Technology Offers New Opportunities for Apple in Enterprise, Internet, and Software Markets
Letter to Customers from Gil Amelio
Acquisition Confirms New Open Apple
Developer Support
Enterprise Offering Enhanced
Internet/intranet Position Strengthened
Acquisition Kick-Starts Apple Software Business
Delivery of Next Generation Mac OS
Acquisition Brings New Talent to Apple
Five Key Points
Chart of Complementary Strengths
Executive Photos
CUPERTINO, Calif.–Dec. 20, 1996–Apple Computer, Inc. today announced its intention to purchase NeXT Software Inc., in a friendly acquisition for $400 million. Pending regulatory approvals, all NeXT products, services, and technology research will become part of Apple Computer, Inc. As part of the agreement, Steve Jobs, Chairman and CEO of NeXT Software, will return to Apple–the company he co-founded in 1976–reporting to Dr. Gilbert F. Amelio, Apple’s Chairman and CEO.
The acquisition will bring together Apple’s and NeXT’s innovative and complementary technology portfolios and significantly strengthens Apple’s position as a company advancing industry standards. Apple’s leadership in ease-of-use and multimedia solutions will be married to NeXT’s strengths in development software and operating environments for both the enterprise and Internet markets. NeXT’s object oriented software development products will contribute to Apple’s goal of creating a differentiated and profitable software business, with a wide range of products for enterprise, business, education, and home markets.
Using NeXT technology to embrace open industry standards Apple Computer, Inc. believes the acquisition will allow the Company to further develop industry alliances as the Internet/intranet market evolves. Apple anticipates that NeXT’s expertise in next-generation operating system design will allow elements of the NEXTSTEP operating system to become integral features of Mac OS–providing developers a compelling OS foundation on which to build next generation software solutions.
“The acquisition of NeXT is the start of a new chapter in Apple’s history and represents a milestone in our transformation as a corporation,” said Dr. Gilbert F. Amelio, Chairman and CEO, Apple Computer Inc. “Today Apple welcomed back its most talented visionary” Steve Jobs, someone who can inspire a new generation of customers and software developers and show that Apple remains the industry home for innovation and excitement. Today Apple returns, as an open player to the mainstream and the heart of this industry, where our technology can once more set standards for innovation and excellence.
“Much of the industry has lived off the Macintosh for over ten years now, slowly copying the Mac’s revolutionary user interface,” said Steven P. Jobs. “Now the time has come for new innovation, and where better than Apple for this to spring from? Who else has consistently led this industry–first with the Apple II, then the Macintosh and LaserWriter? With this merger, the advanced software from NeXT will be married with Apple’s very high-volume hardware platforms and marketing channels to create another breakthrough, leapfrogging existing platforms, and fueling Apple and the industry copy cats for the next ten years and beyond. I still have very deep feelings for Apple, and it gives me great joy to play a role in architecting Apple’s future.”
How about introducing the most basic iOS7 functionality, being able to swipe back, before you continue to comment on the work of others!?! You should be embarrassed by this app.