Apple gaining traction as Mac market share increases

“Mac is back,” Beth Snyder Bulik reports for Advertising Age. “Industry watchers are pleasantly surprised that it was Apple Computer’s design-inspired and user-friendly machine, not its small white music wonder, that bolstered the bottom line in the company’s just-reported fiscal third quarter. Apple shipped more than 1.3 million Macs in the U.S. for a 12% increase year-over-year. That puts it on the cusp of a 5% market share-the company’s biggest slice of the pie since 1998.”

“‘It’s not gigantic market share, but the momentum proves they’re doing something right,’ said David Daoud, analyst at IDC, who puts Mac’s share at 4.8%. ‘The numbers tell us the company is gaining traction.’ The rising numbers are important because Mac adds considerably more to Apple’s bottom line than iPod. And while 5% seems small, it’s not shabby in a highly fragmented market. According to Gartner’s latest U.S. data, leader Dell has a hefty 32% share, followed by HP with almost 19%, but the rest quickly dissolve into single digits: Gateway is at 6% and Lenovo has just under 4%,” Bulik reports.

“Analyst Tim Bajarin of Creative Strategies said ‘there is no question that Apple believes that the Mac as a platform is vital to its future.’ He added: ‘I think they’ll become even more aggressive in pushing the Mac as the center of digital living.’ If so, it’s got a ways to go. According to TNS Media Intelligence, Apple spent less than $7 million in measured media on Mac for the first 11 months of 2005, compared to some $57 million for iPod. Spending on Mac presumably has risen considerably this year with the new effort, though figures were not available,” Bulik reports.

Bulik reports, “The recent Mac success, of course, is still distant from its zenith in the ’80s. In 1986, for instance, Apple had a 16% market share and was the No. 2 seller of computers behind then-leader IBM. Even as late as 1990, Apple held a 10.7% share. Some optimistic analysts say Apple could once again reach a double-digit share in the U.S. computer market, but others believe modern market conditions will make that difficult, if not impossible.”

Full article here.

MacDailyNews Take: The phrase “modern market conditions” is meaningless. Nothing’s impossible (unless you only use Windows). Apple will confound the naysayers once again. More and more people will wake up to fast, fun, and secure personal computing with Macintosh. Only Apple Macs can run Mac OS X, Linux and Windows. Dominant market shares can be lost and gained virtually overnight. It’s happened before in many industries.

Related MacDailyNews articles:
Analyst: Apple selling more notebooks than Wall Street realizes – July 31, 2006
Apple brewing ‘Perfect Storm’ of Mac sales? – July 28, 2006
PC World writer’s advice for Microsoft: ‘Stop making crap’ – July 27, 2006
Microsoft about to lose the software business just as IBM lost the PC business in ‘80s – July 26, 2006
Survey shows big jump in consumer interest in buying Apple Mac; Dell takes steep slide – July 06, 2006
Dude, you got a Dell? What are you, stupid? Only Apple Macs run both Mac OS X and Windows! – April 05, 2006

39 Comments

  1. I’m always amused when technology and financial analysts seem incapable of remembering the phrase “past performance is no guarantee of future performance,” especially since they’ve been the ones pounding it into our brains for the past 50 years. And yet, they create their opinions in a reality where the future is purely unknownable, and the the only thing that impact belief is the past performance of the market. It’s like watching a NASCAR race where all the drivers drive facing the back of their car and drive in reverse around the track.

  2. ‘modern marketing conditions’ is a phrase of the herd, by the herd and for the herd. What utter dimwits. My $$$ is on the table. I betting most of my assets — my ass, for short — on AAPL and against the naysayers.

    When Apple becomes the #1 business school example on how to succeed — give it 5 to 10 years for the lesson to sink in — the anal-ists will all coo about how obvious it was. But now, most of them are clueless.

  3. PCs Rule,

    You’re right, absolutely right.

    But then again, the Hapsburgs ruled major portions of Europe for almost 5 centuries . . . and many were mad as hatters. (And I’m not talking “angry” mad.)

    More often than not, “ruling” = “tyranny” which is certainly the case with MonkeySee (MS). Having more experience with tyrants than has the USA, Europeans have decided to impose draconian fines on the company in order to (1) make them comply with fair business practices or (2) get the hell out.

    Either way, there is no upside to MS’s present predicament in Europe. I can only hope that with an administration change in this country in a couple of years that this particular brand of Old World fever will spread to these shores.

  4. I think people need to put the market share issue into perspective. Apple’s market shrunk when businesses began to slap cheap PC boxes on millions and millions of worker’s desks. Meaning that one person in a company would make the choice, but purchase 500 machines. These machines were part of a market that Apple was not even trying to acquire.

    The bottom line is not market share, but units sold. If you were an investor, would you rather have Apple’s former high market share, or the actual number of Machines Apple now ships. My wallet says the latter.

    On another note, if you want a halo effect, then Apple needs to work on the game front. Young people buy machines for games. If they get a Mac because it plays games better, they will likely begin to play with ilife, Final Cut, and they will be hooked. I am a video editor and designer today, and I attribute that to the fact that the Amiga was the best at playing games

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