Apple Computer boosted its worldwide market share from 2.0 percent in the first quarter of 2003 to 2.3 percent in the second quarter, although slightly down from 2.7 percent a year ago.
“Apple’s quarter ‘wasn’t as good as other top vendors, but they just announced new products,’ IDC analyst Loren Loverde said of Apple’s market share drop. ‘Apple sales tend to respond to new products.’ Loverde noted that Apple recently announced the Power Mac G5, which will start shipping in August and could boost sales,” reports Ina Fried for CNET News.com.
“Although unit sales were down, there were bright spots in Apple’s earnings report. The company last quarter had its highest revenue level in nearly three years by selling higher-priced machines, as well as more of its iPod music players. The iTunes Music Store offers another potential boost to the Mac maker,” Fried writes.
“The expansion into the music business could help offset relatively flat PC sales, but it isn’t clear how much benefit the company will get from selling music downloads. The company did say its iTunes Music Store was nearly at the break-even point, with 5 million tracks sold by the end of last quarter. The company expects to sell far more songs once it has a Windows version of iTunes available later this year,” writes Fried. “Needham analyst Charles Wolf said in a research note this week that Apple could capture 20 percent of the U.S. pay-per-download market with its iTunes Music store. Wolf estimates that the overall U.S. online download market could reach US$2.9 billion, meaning that the Apple store could generate US$600 million in annual revenue.”
Fried reports, “As for the PC business, some analysts say it’s time to stop measuring Apple [by its] slice of the overall PC market… Apple [addresses] only part of the market, said NPD Group analyst Stephen Baker… Apple has concentrated at the high-end of the consumer market. ‘Nobody expects that you can sell Acura TSX sports cars as Taurus wagons,’ Baker said.”
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