NPD: Apple corners premium market; Apple’s market share of PCs over $1,000 hits 66%

“Apple’s retail market share is 14 percent, and two-thirds for PCs costing $1,000 or more,” Joe Wilcox reports for eWeek. “Should I repeat those numbers? The share data is for first-quarter [U.S.] brick-and-mortar stores, as tabulated by the NPD Group. Apple’s market share is but one measure of success. Sales growth is way up, while Windows desktop PC sales are way down.”

“‘In notebooks they’re growing two times the market,’ said Stephen Baker, NPD’s vice president of industry analysis,” Wilcox reports. “‘Windows notebooks are pretty much flat right now.’ For the first quarter, Windows notebooks had ‘zero percent” growth year over year, Stephen said. By comparison, Apple notebooks had ’50 to 60 percent growth.’ On the desktop, ‘They’re up 45 percent,’ he continued. ‘The [overall] market is down 20 percent. Windows desktops would be down 25 percent.’ The figures are also for first quarter.”

“I spoke with Stephen earlier this afternoon. He remarked: ‘iMacs are growing and the Windows desktop ain’t. No matter how you look at it, Apple is outperforming Windows,'” Wilcox reports. “Apple’s market share in what NPD calls the ‘premium’ category, or laptop and desktop PCs selling for $1,000 or more, is nothing short of phenomenal: 66 percent. That’s right, two-thirds.” Stephen said Apple appeals to the right segments, like multiple-computer households. Consumers that are buying a second, third or even fourth PC have different buying priorities, such as ease of use [and Apple’s] retail stores make a huge difference.”

Full article here.

MacDailyNews Note: “Apple’s share of the $1,000-plus retail market was less than 18% in January 2006 according to NPD. By September 2007, it had grown to more than 57%,” Phillip Elmer-Dewitt reports for Fortune. More here.

59 Comments

  1. ZT is ZT, but there goes:

    I can build my own machine for way, way under $1000.

    …just as I could build my own car for way, way under $20,000. And get about the same results. ” width=”19″ height=”19″ alt=”raspberry” style=”border:0;” />

  2. would be nice if the original article, and this one mentionned it’s “only” the US market.

    but still, the quarterly results were very good, but nowhere close to something like this, even if it’s just the retail market of over 1000$ computers.

  3. IMO What makes it all the more significant is that Apple only has one model priced below $1000 – the Mini. So, basically, in the markets that Apple CHOOSES to compete in (above $1000) it DOMINATES the market right now.

    And frankly, from what I have seen in PC’s below $1000, I remain unimpressed. Loaded with bloatware, unable to operate, its amazing.

    MDN Magic Word – six

    Six times eleven is sixty-six ” width=”19″ height=”19″ alt=”cheese” style=”border:0;” />

  4. The key here is the market Apple chooses to compete in. The profit margins, and frankly the quality, of sub 1k pcs doesn’t make it a market worth competing in. A sub 1k pc can run last years OS, last year’s office apps, and that’s about it.

    I use PCs too. I use only top of the line parts, they cost about 3k to make, can play the latest games (the only thing I really need a pc for anymore – hello Apple?), and last me 5 years. You get what you pay for.

  5. There’s a premium market??? I thought all computers were supposed to cost no more than the bargain-basement, piece-of-crap PC’s that Apple critics are always comparing Macs with. Now we’re getting somewhere!

  6. I was on a plane coming back from Beijing last week and noticed that nearly all of the laptops in use on that flight were MBPs.

    The NPD data just confirm my personal observations over the past several years as a heavy business traveller. I used to be the only one with a Mac among those with Dells and Thinkpads. The Macs have been taking over lately. (I haven’t seen may MB Airs though).

  7. @HMCIV

    I would argue that nearly ALL desktop PCs bought for standard business use (not video / graphics) are under $1000.

    The Dells we use cost something like $600, and are completely adequate for running our ERP and MS Office.

    However, Dell and HP are not making a lot of money on these machines. Thats why I sold all my Dell stock several years ago and have kept buying Apple.

    As a shareholder, I am happy that Apple only has one model under $1000, and would prefer that nobody buys it. I would rather lose the sale and have a PC assembler get the sale than for Apple to make a sale with $0 of profit. That hurts margin %, as well as return on capital, which damages the stock valuation.

    It is also just plain bad business, but obviously many managers don’t seem to realize this and justify “loss leaders” as being done for “strategic” reasons. That may be true if their long term strategy is to go out of business, which Dell seems to be doing.

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