IDC: Apple Mac attained 5.8% of U.S. market share in Q3 06

Worldwide PC shipment growth slipped to 7.9% in the third quarter of the year, according to IDC’s Worldwide Quarterly PC Tracker. Overall growth was down from 9.8% in the second quarter and double-digit growth over the prior three years. International shipments continued to expand at roughly 11% year on year, but slow growth in the United States pulled down overall results.

Growth in Europe has recovered after a slow second quarter, but a similar adjustment seems to have occurred in the United States during the third quarter. With a dominant share of the U.S. market and in the midst of efforts to refocus its business, Dell felt the brunt of the shortfall with shipments falling nearly 7% year on year in the U.S. Hewlett-Packard was able to leverage strong growth in international markets and relatively strong performance in the United States to boost overall volume incrementally ahead of its rival. Although HP volume was larger by roughly 28 thousand units, on volumes of nearly 10 million, IDC considers this is a statistical tie.

The outlook for growth in the second half of the year has been under some scrutiny as replacement activity has declined and the delayed launch of Vista gets more attention. Spotty growth in some markets contributed to these concerns, but the overall outlook has remained fairly positive.

“This quarter’s results show a similar volatility to last quarter, with strong international sales and growth in portables reflecting continued demand while we saw weak results for Dell and the U.S. market overall,” said Loren Loverde, director of IDC’s Worldwide Quarterly PC Tracker, in the press release. “Dell has had some negative publicity recently regarding its battery recall but it is hard to attribute the third quarter results to bad publicity alone. Dell will likely be very aggressive in the fourth quarter, and we will see how similar battery recalls affect other vendors. These factors may cut into fourth quarter growth, but overall we don’t see a broad threat to fourth quarter growth.”

“In the U.S. market, the focus continues to be on the transition from desktops to notebooks, with notebook growth being the sole bright spot while desktop shipments continued to decline,” said Bob O’Donnell, vice president, Clients and Displays at IDC, in the press release. “The impact of Dell’s decline was particularly acute in the U.S. and led to a shrinking of the market versus the same period last year.”

Regional Outlook

United States – Slower than expected growth from Dell, which represents roughly a third of U.S. PC shipments, weighed heavily on growth in the United States. Overall, portables growth slipped quickly into single digits, significantly constraining the primary market driver. Despite disappointing results in the third quarter, IDC expect vendors to step up promotions in the fourth quarter to sustain growth.
EMEA – After a slower second quarter impacted by the World Cup and channel inventory clearance, 3Q06 managed to beat expectations at 10% growth. This growth was driven by a buoyant back-to-school season and continued demand for notebooks, although consumer desktop demand continued to lag despite aggressive promotions in retail channels. Recent demand and a relatively clear channel support a solid outlook for the region.
Japan – The Japanese market suffered another quarter of declining growth as commercial shipments remained flat and consumer volume fell in the face of competition from LCD TVs and other products. Dell continued to grow in solid double-digits year on year while most of its competitors declined. Still, seasonality played an important roll as Dell saw a sequential decline while top competitors saw volume increase from the prior quarter.
Asia/Pacific (excluding Japan) – Growth in APeJ remained in double digits, with a strong showing from large regions and market leaders. China met expectations while India and South Korea saw increased demand.

Vendor Highlights

HP had a very solid quarter, catching up to Dell after trailing its rival since the end of 2003. Growth in the United States slowed from recent quarters, but remained well ahead of the market and Dell. The company also saw important gains internationally, with strong growth in Europe and emerging regions.
Dell saw strong growth in international markets – particularly in Asia/Pacific, Japan, and Latin America. However, growth in EMEA was slightly behind the market, and in the United States, which represents over 50% of its shipments, Dell saw volume decline by nearly 7% year on year with a double-digit decline in desktops.
Lenovo grew slightly faster than the market again on the strength of its Asia/Pacific business. The company also saw a positive improvement in its European business. However, a stronger second quarter in the U.S. gave way to further contraction in the United States and Japan.
Acer continues to grow at a rapid pace with solid gains across regions. Growth in Europe – which represent the bulk of the business – improved notably from an already solid base, while growth in other regions was more moderate than recent quarters, but still quite strong. Acer remains well positioned and poised to leverage its position in portables and other growth areas.
Toshiba continued to benefit from strong demand for portables as growth remained solidly in double digits. EMEA, as well as other international markets, remained particularly strong for Toshiba.
Gateway had a slow quarter, pulled down by lackluster consumer demand in the United States. International shipments grew in double digits and on par with the market. Growth in the U.S. was flat after several quarters of strong gains. Although the soft U.S. market meant Gateway’s growth kept pace in individual markets, the company’s focus on the U.S. limited its overall growth.
Apple had a very good quarter with shipments increasing more than 30% in all regions except Japan. The growth is an excellent sign of the success of Apple’s transition to Intel based systems.

Notes:
• Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/brand under which they are sold.
• PCs include Desktop, Notebook, Ultra Portable, and x86 Servers.
• PCs do not include handhelds. Data for all vendors are reported for calendar periods.
Source: IDC, October 18, 2006

Notes:
• IDC estimates for Gateway & Toshiba are prior to financial earnings reports.
• Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/brand under which they are sold.
• PCs include Desktop, Notebook, Ultra Portable, and x86 Servers.
• PCs do not include handhelds. Data for all vendors are reported for calendar periods.
Source: IDC, October 18, 2006

IDC’s Worldwide Quarterly PC Tracker gathers PC market data in 55 countries by vendor, form factor, brand, processor brand and speed, sales channel and user segment. The research includes historical and forecast trend analysis as well as price band and installed base data.

IDC is a division of IDG, the world’s leading technology media, research, and events company. Additional information can be found at http://www.idc.com/

MacDailyNews Note: Apple holds 2.8% worldwide market share using Apple’s stated 1.61 million Macs (Apple’s fiscal Q4, calendar Q3) and IDC’s 57.052 million total worldwide PC shipment 3Q numbers. IDC and Gartner’s numbers vary slightly due to differing methodologies.

Related MacDailyNews articles:
Gartner: Apple Mac grabbed 6.1% of U.S. market share in Q3 06 – October 18, 2006
Apple Q4 earnings results: $546M net profit on $4.84B revenue, sold 1.61M Macs, 8.729M iPods – October 18, 2006
Gartner: Apple should quit hardware business and license Mac OS X to Dell – October 18, 2006
Gartner: Apple Mac grabbed 4.6% U.S. market share in Q2 06 – July 19, 2006
IDC: Apple Mac attained 4.8% U.S. market share in Q2 06 – July 19, 2006

26 Comments

  1. Here we go again. This is unfolding exactly the same as it always does.

    If we talk about the music market, which is potentially much larger than the PC business you laugh at competitors hoping to gain a measly 25% market share.

    You all say; “There’s only a 25% market share left, why even be in the business?”

    Now, you drone on and on about how really, really huge a 6% market share really is…

    Don’t you get tired of hearing your heads rattle?

    And I agree with LordRobin, Apple is raking us over the coals with mark-up. Which is fine, profits are why they are in business. I’m in business to make money too.

    Just don’t expect corporations or schools to be knocking their door down anytime soon to buy the only machines that can run any OS. They still cost too damn much.

    And Dell’s workstation being $300.00 more than the Mac Pro is great…except most schools and corporations aren’t buying $3000.00 computers. They are buying $300.00 ones, and Apple can’t or won’t compete here.

    To a lesser degree this also applies to the average home buyer. Plus most will still get what they use at work, even when they know the work PC sucks.

  2. Apple competes in only a few regions, and a few specific markets within those regions:

    US/EU/Western World, and a few WW target regions (China, Russia, Latin America -save for specific regions) need not apply.

    Of the regions Apple chooses to attack, they pick the following markets in which to play:

    – Education
    – Scientific
    – Creative
    – Consumer

    In each one of these regions, in these markets, Apple is accumulating strong shares.

    China, and Asia in general, represents a large growth market, but the market that is available are well below Apple’s fully equipped solutions, and it would be unfruitful to attack a low-margin, low acceptance rate market.

    Everywhere Apple is choosing to win, they are doing so. Lots of room for growth.

  3. If Apple want worldwide market share to increase, they need to open more International Apple Stores. That US increase from 3.5 to 6% is first and foremost down to availability of demo product. People like to touch and play before they buy a computer.

    Apple Stores need to open in France, Italy, Germany and Spain quickly. Four trillion dollar plus economies that Apple have next to no presence in. It’s not good enough to have five or six UK stores and say you’ve got Europe covered.

  4. Relax guys…

    These are lagging statistics. They don’t tell the deeper story -at all. Try reading the tea leaves, what you smell, feel and hear… and then draw the picture.

    Only statisticians and accountants (PC man?) drive down the road looking in their REAR VIEW MIRROR.

    Why did the iPod take off like it did? Because a few dozen high profile, influential people like Bono bought into them early on, and their fans followed.

    I see really influential people using Apple now, they are connectors and leaders, and will spread the word to others. Apple’s growth is on the way already and all these statistics will only reveal that in the future. And hell, even the BBC has trouble covering up the Apple logo’s on their broadcasts (why Macs?, because those TV show Macs are destined for real people who want them, not HP’s or Dell’s).

    Anyone on here who is reading up on Apple in even the smallest way will appreciate that.

  5. It isn’t about where you are at, but where you are headed. “We are in a fully loaded 747 speeding along at 35,000 feet, and you’re just an odd looking space shuttle sitting on the launch pad going nowhere and pointed in the wrong direction.”

    “Majority rule” is the government by idiots for idiots. Popular consensus has always been a very poor indicator of truth. “Even the most dull-witted person can see that the Sun moves around the Earth, and can feel that we are not in motion.”

  6. I never blab about how 25% of the musicshare is worthless. Apple’s last figure was 4.5% marketshare, now it’s 5.8%. Only about four years ago, it was around 1.2% (when they intro’d OS X). This is all very positive news. Look for Apple to reach 10% by the end of next year.

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