Associated Press: Apple Mac switch to Intel a ‘risky move’ for the ‘niche player’

“In a risky move that could further shrink its minuscule slice of the PC market, Apple Computer Inc. announced plans today to switch its Macintosh computers to the same Intel Corp. chips used in systems that run Microsoft Windows,” The Associated Press (AP) reports. “Apple, which for years suggested its users ‘Think Different,’ will join all other PC makers in using microprocessors built on an architecture that took root in 1981 and eventually turned Apple into a niche player.”

“By moving to Intel chips, Apple is abandoning the so-called PowerPC architecture that it developed with IBM Corp. and Motorola Inc. in the early 1990s,” AP reports. “Over the years, Apple touted PowerPC as more powerful than the processors that run Windows PCs, with Apple CEO Steve Jobs even comparing some Macs to supercomputers.”

“In the mid-1980s, the Mac captured as much as 10 percent of the overall PC market, he said. But when Apple switched from Motorola 68000 processors to PowerPC chips, the Mac’s share dropped to below 5 percent. When the Mac’s operating system later changed to OS X, it fell to below 3 percent,” AP reports.

Full article here.

MacDailyNews Take: Apple’s Mac market share is currently growing at a rate of over three times the global PC market and more people use Macs than AP seems to realize or wants to accurately report. Like the AP’s recent iPod/Apple share price report, this article reads like a hit piece.

Related MacDailyNews articles:
AP: Apple shares slide on reports of iPod sales of over 5 million for quarter – June 03, 2005

16-percent of computer users are unaffected by viruses, malware because they use Apple Macs – June 03, 2005
Gartner: Apple Mac moved up to fifth position in the U.S. market in first quarter 2005 – April 15, 2005
Apple Mac grew four times faster than global PC market last quarter – April 15, 2005
Apple Q2 2005 Macintosh and iPod unit results – April 13, 2005
Survey shows Apple Macs owned by nearly 10 percent of US small and medium-sized businesses – February 17, 2005
More people use Apple Macs than you think; 8-12 percent of homes use Macs – March 31, 2004
10 percent of computer users use a Mac; 3 percent is Mac’s approximate quarterly market share – February 10, 2004
Syracuse Post-Standard: 3 percent is a false stat; Mac holds ’10 to 12 percent of the market for PCs – August 27, 2003

44 Comments

  1. Oh right, PowerPC is what made the Mac lose marketshare. Please.

    People will look for ANY reason to spread FUD. Expect it to last a full year. That’s {fine} with me. Grin and bear it. The last laugh is ours!

    {} = MW

  2. It is the OS, stupid

    Again, it seems that some people don’t get it.

    Apple market share suffered because of the ripped-off OS on Windows 95, not the switch. Ultimatelly, the switch pains from 680×0 to PowerPC was for programmers, not for users.

    The switch from OS 9 to OS X, despite of the pains for some people, seems completed.

    If IBM cannot run at the industry speed with new PowerPC, it is not so important. Mac OS X is independent of processor. Maybe not the applications, but Apple is giving a whole year to programmers to make the switch to Universal Binaries and even legacy apps can run with Rosetta (maybe OS 9 apps will not run there, but it is about time for those apps to get buried).

    And I think that there is an ace (at least one) on Steve’s sleeve: If he is not succesful on changeing platforms, he still can use the installed base of Intel PC and unleash Mac OS X for that platform and even gain a big piece of the OS pie. (this is my speculation).

  3. Apple’s stock price should soar in the very near future, since I just sold my shares.

    Maybe I’ll buy in again when things begin to stabilize after this transition is well under way and better defined. Right now, way, way too much uncertainty for this puppy. I have confidence in Apple, but I’m worried about what others will do to the stock price in the face of this uncertainty and seemingly risky move.

  4. There were other factors involved with Apple’s market share dropping. By indexing market share at processor types AP is completely missing the picture. This is just FUD.

    They might say something like, this is what people have been wanting for YEARS and it looks like Apple will pull it off so smoothly that no other computer maker could hope to match it.

    OS X will be the only OS running fully compatible on two different platforms at the same time without emulation. Now that’s something unheard of as far as I know.

    For the first time we will be able to have direct benchmark comparisons of PPC and Intel! Certainly some people are excited about that.

  5. Just because you use an Intel processor does *not* mean that you end up with an IBM compatible PC based on 1981 designs. Pentiums are general purpose CPUs. They have a certain amount of glue logic required to put them in whatever product you design. However, the result does *not* have to run Windows. I strongly believe that the current view from the major media and others (including here) that Apple will be building Windows comptaible boxes atarting in June 1996 is completely wrong. The Mac hardware architecture is very different from the PC hardware architecture. This difference is in many more ways than just the processor. I consider this a very good thing. Having to support a 24 year old hardware design (on the PC side) makes things a little harder there. Apple, since it controls the hardware and hardware spec, can build whatever it wants the best way since it knows what computer products will exist and what will need to be supported. More efficient, better results.

    I only wish Half-Life 2 would be ported to the Mac (but that is why I have my $500 PC)

  6. Despite the fact that Apple will make their very own Intel computer (not a Wintel machine, by the way) the fact is that yesterday SJ’s keynote was on a 3.6Ghz Pentium 4 and that Mac OS X runs since 5 years ago on Wintel machines (I do not think Apple did it’s very own Intel-based design).

    SJ yesterday announced that all the development of the MacOS X has been made platform-independent, so, if he wants, Tiger can run on today’s Wintel boxes. AND this is a plus.

    MDN MW: Against, as in “Against MicroShaft” or in “Against Analysts”

  7. bid deal here is the move to xcode and universal binaries.
    There is no reason that Apple will not continue the secret life of OSX in the inverse. If OSX becomes CPU agnostic alongside most (if not all) compatible software, then Apple is well insulated against X86 or PPC gains or losses. If IBM develops stellar G5-6 archtectures in the next few years Apple might use a variety of processors in its product line depending on the application. Intel may be able to scale the processors right now to suit Apples long range plan but that doesn’t mean OSX server might not be ported over to the POWER line at IBM. If all else fails Apple may simply become a software publisher and bury Microsoft in the process…

  8. “haha Apple sounds just lke Microsoft now.

    “Just wait till next year..blah blah blah…””

    When did Apple say this? They didn’t someone on this board did.
    And btw, MS doesnt say wait til next year they say wait until the year after next.

  9. Think people! Everyone wins with this scenerio. All you do is install WIndows (Longhorn) on you new Intel Mac, and all software works. Microsoft is happy because they will sell more. Apple is in a great position, because they are betting Windows users will love their OS, while not losing any of their Windows only software.

    Apple has the technology and experience to launch two different operating systems on the same machine (OS9 & OSX).

  10. I think this is just step one toward becoming more like Microsoft in order to compete with them. I fear some future CEO will make the decision to drop making hardware and license the OS. They’ll still be in the business of making their specialized hardware like the iPod, just as Microsoft makes X-Boxes. And then we’ll see how well the OS does on equal footing with Windows.

    Scary. I doubt that is Steve Jobs plan but he has said that in 10 years Apple may be a music company rather than a computer company. And I am wondering more about the post Steve Jobs fate of Apple. I think Job’s love of hardware and his personal view of the whole ‘experience’ and design must include the hardware precludes this from being a conscious plan. But still,

  11. Can somebody please explain to me why, when I look across the floor of our building, which is full of Macs & PCs, all the Macs screen are still, but all & every PC, the screen flickers up & down, like you would see when you catch it on video? My eyes are great & I have no problem, but I do work on a Mac. I’m just worried that when I do have to go on a PC, if this would cause me a problem. I know up close the screen looks fine, but if they flicker from a distance, there must be some damage that’s going on. Is this flicker going to happen when they switch to Intel?

  12. This in like in the movie “Dune” “The Sleeper Must Awaken”
    Apple has been the sleeper and now with all of the Billions of Intel based
    computers out there, customers have a choice; Microsoft who could’nt
    secure their system even if Bill Gates’s mother’s life was on the line…
    and small market share Apple. This is the 2nd comming and people
    better be ready. PC software mfgs are the key and Apple must convince them to port over to OSX. Thats the only thing keeping billions of PC users on Windows and if all was right which OS would they choose?. OSX for the PC, powered by Intel will be the next revolution and the “Sleeper Has Awakened”, sorry Bill but we do like Office.

  13. I hardly consider Apple only a niche player with there growth the way it is. OSX is really winning over PC users to switch since Microsoft can’t seem to fix there security woes. Apple seems to have a very solid plan in place to make this pretty painless. Oh there will be bumps and people whining but overall Apple is not new to these transitions. The biggest battle is already done and that’s Tiger for Intel is fully functioning and up-to-date as the Power PC version.

  14. Yesterday’s announcement was “check”.

    In five years’ time (or maybe less), when all the major Mac apps have been ported across, and Apple has diversified into digital consumer devices and content, will come “checkmate”: license Mac OS X to other PC makers.

  15. John and Dennis,

    John, Apple has been a niche player which has only been a leader in the graphic design community. Business machines and servers which account for market share has been very small due to IT not supporting Apple for a variety of reasons and business software not supporting Apple.

    The only way to win over pc users is to give them Tiger at 129.00
    that works with their current software, not replace there existing Intel based pc with a $1200.00 iMac. We are talking Billion not Million and thats a growth rate that will take Apple to Google like stock prices.

    Dennis,
    PowerPC has reached a road block on speed and IBM has sold it’s PC
    business. Not going to hurt them much.

    I am and have always been an Apple user, reseller and service provider.
    Time to cash in on all that loyalty and patience.

  16. This is directed to all the fearmongers:

    As always, as long as Apple can remain profitable enough to stay alive, they will be doing well for at least those of us who can’t stand Windows. We call the other side Wintel, but it’s really Wintel/WinAMD, no? Or WinX86? So what if we have a new processor? Let’s look several decades into the future– are people expecting to be using the enormous computers of the 1950s? 1970s? The processors of the 90s? How about the ones we have today?

    Geez– for the doubters– your fear clouds your judgment. If holographic storage and light processors ever come about, should we be holding on to the past, or should we take the plunge? Gosh, with all the doubters, we’d be in horse and carriage now because “change is scary.” Sure, all change brings with it some inherent risks, but what is the alternative? Stagnant technology for the sake of feeling “exclusive”? If so, people really need think what it means to be exclusive in this realm: it means not like everyone else (not because of the hardware completely), but simply because it does what is says it’s supposed to do.

    And frankly, if Apple can’t meet expectations or produce something that people want/need– why keep them around? My bet is that we’re not going to have to worry about Apple dying off. This decision, while done out of necessity is done out of a position of power– this company has the ability to go in directions of it’s choice right now. It wasn’t long ago that they were forced to change OS9 because it was long in the tooth and losing ground to the competitors. That sucked, yet they pulled it off with flying colors.

    Let out your fear. Gripe, moan. It’s ok. I validate you. Let’s all hug. Then get over it and embrace the unknown. This is a new day and that’s a good thing. Such change will only bring inovation we haven’t seen yet. This is so cool! (triumphant music fades, dammit, as R walks into the sun drenched horizon.)

  17. Jeez. Look at what the J-School grads are churning out now.

    “Hit piece” hardly describes this ignorant assemblage of words. Articles like this just make me more optimistic about my favorite “niche player.”

    After all, I’m a Republican and I read this level of insightful factoid-juggling journalism about Republicans every day in the AP and NY Times, et al. (and yet we keep winning).

    So why should we expect the “mainstream” press be more accurate about anything else??

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  18. R: Amen!

    I’ll admit that I was hoping for Apple to stay with PowerPC, but if moving to Intel means a better computing experience and great new product for the future, then I say: “Bring it ON!!!”

    To the people who want to feel “exclusive”: Go on ebay and buy a Commodore. If anyone buys something (a Mac, iPod, car, etc) just to feel special, I feel sorry for you. I thought buying Macs and iPods were about great user experience and ease-of-use. At least, those are (some) of the reasons that I bought mine.

  19. What Jobs demonstrated yesterday at the developers conference is that
    Apple Computer is willing to knife every present Mac owner in the back
    in an effort win over people who already have decided that they dont
    want a Mac because they already own PC s. The options were holding
    out for other options like CELL technology, waiting a little longer for
    the development of other chips or dual core systems, improving the Mac
    in such a way to attract gamers, improving the Mac in such a way to
    attract the engineering community. But to say–we will switch because
    we want cheaper chips so we can sell to those few consumers who would
    switch to Mac if only Mac were a tad cheaper–the difference in price to
    the consumer will be miniscule–to me this is stupid. What is incredible is that Apple had Intel and Microsoft in a terrible position.

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