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. Yawn — Apple sells 4 computers thereby doubling its marketshare. Big deal. Dell sells more computers in a day then Apple sells in a year. Everyone wants Microsoft Windows rather than bloated and overpriced OSX. Why purchase an operating system that has no software and is the swiss cheese of security because the hackers are just waiting to attack? There is a reason that Microsoft has 90% of the market and it is because they produce the best operating system on the planet. It can be trusted in the corporate world and is used by students everywhere.

    Macs may be useful for graphics design, but who needs a single use computer? Just get a real computer from HP or Dell running Windows and you can do anything you want.

    It is unfortunate that people will say anything to get this turkey of a stock back up. People have lost more money in this stock then people did in the 1929 stock crash.

  2. Ahem…

    “Yawn — Apple sells 4 computers thereby doubling its marketshare.”

    LIE.

    “Big deal. Dell sells more computers in a day then Apple sells in a year.”

    LIE.

    “Everyone wants Microsoft Windows rather than bloated and overpriced OSX.”

    LIE.

    “Why purchase an operating system that has no software and is the swiss cheese of security because the hackers are just waiting to attack?”

    LIE.

    “There is a reason that Microsoft has 90% of the market and it is because they produce the best operating system on the planet.”

    LIE.

    “It can be trusted in the corporate world and is used by students everywhere.”

    LIE.

    “Macs may be useful for graphics design, but who needs a single use computer? Just get a real computer from HP or Dell running Windows and you can do anything you want.”

    LIE. Apples aren’t single-use computers, and never have been.

    “It is unfortunate that people will say anything to get this turkey of a stock back up. People have lost more money in this stock then people did in the 1929 stock crash.”

    LIE.

    Wow, I think you win the world record there, MacRealist, for creating the longest post that consists of nothing but lies. Do much work for the DNC? You seem to have the big lie and the little lie one-two punch down to a science.

  3. MacRealist has been outed, he’s actually Steve “Monkeyboy” Ballmer.
    Only Monkeyboy could be that stupid and remain that loyal to Micro$oft. The rest of the world is catching on quick.

  4. MacRealist has been outed–he’s actually Steve “Monkeyboy” Ballmer.
    Only Monkeyboy could be that stupid and remain that loyal to Micro$oft. The rest of the world is catching on quick.

  5. OK, “Realist,” your true Trollness finally oozes out . . . or is it just your unique and unrestrained sense of humor?

    OS X “bloated”? HYSTERICAL!

    OS X the “swiss cheese of security”? BWHAHAHAHAHAHAHAH! My sides are hurting! You’re a riot!

    “Windows in the best operating system on the planet.” Guffaw, guffaw! And which planet might that be?

    “Macs are a single-use computer”! Oh, please stop, please, please stop! As I gasp and chortle through that one, I thought Macs could run ANY operating system, from Windows to OS X to Linux. How many can Dulls run? (Before they catch on fire, of course.)

    “People have lost more money in this stock then [sic] people did in the 1929 stock crash.” Oh god, I can’t breathe! (By the way, “then” does not equal “than.”) Between gasps . . . MonkeySoft’s market cap is presently $243.2 Billion, down from $343 Billion five years ago. Somebody, somewhere lost $100 Billion with this turkey. AAPL, on the other hand is presently valued at $57.9 Billion, up from $12.3 Billion five years ago, for a net GAIN of $45 Billion. (DELL = $49.5 Billion right now.)

    Hmmm.

    How can anyone lose money by holding onto a stock like AAPL?

    But–please-don’t ever stop coming to this site and posting your raucous one-liners. If laughter truly IS the best medicine, we all should start calling you “Dr. Mac Realist”!

  6. PC Rule said: “Just think, with a few more phenomenal, miraculous, unbelievable years and Apple might catch up to Gateway!”

    MDN, can you please either license or develop your own Digg web 2.0 forum technology so we can mod down these dumb ass, worthless comments?

    Thanks in advance!

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  7. Mac Realist,

    Dell = 16% World Market Share

    Apple = 2% World Market Share

    Dell only sells 8 times what Apple does.

    Dell sells more computers in 2 months, 50 days or 7 weeks all would have worked.

    What you said was only out by an order of magnitude. I guess when trolling the truth is ignored.

  8. Why did none of the analysts also mention that Apple now has a staggering 12% of the laptop market? Doubled from 6% in January.

    12% market share. That’s the statistic that really stands out here, as laptops increasingly become the prefered choice of computer over desktops amongst consumers.

  9. justme2 said: “You mean the Gateway that opened its own stores… and failed miserably? We had a Gateway Country store not too far from us, and that place was DEAD.”

    Thanks for helping me make my point! Gateway failed miserably, but Apple still lags far behind. Why?

  10. Apple now has the second highest market capitalisation of any personal computer manufacturer after HP (IBM having left the field), with Dell languishing in third place a distant $8.25 billion back.

    Within a few months, I wouldn’t be at all surprised to see Dell in fourth position behind Sony of all people.

    Interestingly, Dell – a one-trick pony of a computer company – has no R&D and no entertainment strategy. HP has inkjet cartridges to boost its income, Apple has iPods, Sony has media content and PlayStation.

    Poor little Michael Dell is dependent on the delivery of Vista to motivate new hardware sales and that simply isn’t a date that’s visible on the horizon. So – in a nutshell – if your sole business is being a partner to Microsoft, you’re on a hiding to nothing because your main job is to pay fealty to Steve Ballmer.

    As a result, I don’t care very much even if Dell does sell more PCs in a day than Apple does in a year: it doesn’t have a reputation for innovation, quality, or service and it doesn’t make very much money doing so.

    In their last reported quarter, Dell reported profits of $762 million on sales of $14.216 billion – a rate of a mere 5.36%. Apple, whose sales were only $4.37 billion – less than one-third of Dell’s – made a profit of $472 million (10.8%).

    Put another way, Dell has to sell just over double the value of product that Apple does to generate the same profit, a problem which is exacerbated by Dell’s bargain-basement marketing and pricing. They probably have to sell six cheap PCs to generate the same profitability as two iMacs.

    If I were Dell’s shareholders, I would be pressing very hard for a dividend from now on because this share is going south.

  11. “Always better to gain traction than be in traction.”

    – © 2006, Ampar.

    “You can lead a horse to water, but if you can get him to lay down on his back and float in it, then you have something.”

    – Joe E. Brown

  12. PCs Rule: I wonder if you would prefer to invest in Gateway stock… Me, I’ll stick with AAPL. One company is a box assembler, impossible to differentiate from all the other box assemblers advertised in the back of PC magazines. The other company (Gee, I wonder which one…) actually developed a superior OS, creates innovative software, designs/builds award-winning hardware, leads the world in online music sales and, oh yeah… leads the world in the market for portable mp3 players. Who cares if Gateway pushes more boxes (with little, if any, profit margin) out the door. Underneath their holstein cow logo, they may as well be ‘built’ in my garage with off the shelf commodity parts and someone else’s OS. What a great reason for existing… No wonder they’re in the news all the time and discussed endlessly both in Mac and PC circles. Gateway, the next really smart stock purchase, at least if I accept PCs Rule’s line of reasoning… Wow! I learn something new every day.

  13. Huh? and justme2 are both idiots, because they keep helping me make my point.

    Gateway is a complete and utter failure in the PC market, but they sell millions of units more than Apple. Why?

    Because the OS wars are over, and Apple lost.

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