“Steve Jobs likes to talk about Apple’s business model as a stool that rests on three legs: the Mac, the iPod and the iPhone. But the iPhone leg is still pretty short, thanks in part to deferred revenues. And while the iPod’s sales are still growing, its share of the company’s business has been shrinking lately,” Philip Elmer-Dewitt blogs for Fortune.
“Which is why the announcement of new MacBooks scheduled for Tuesday at 1pm ET (10am PT) is so important. Apple’s notebook computers have been its main source of revenue for some time now, and if Apple plays its cards right, they are likely to remain so for the foreseeable future,” Elmer-Dewitt reports.
“iPod represented the single largest share of Apple’s revenue stream as recently as 2006. But over the past two years, the its slice of the pie has shrunk from 42% to 29%, while the Mac’s slice (both desktops and notebooks) has grown from 40% to 47%,” Elmer-Dewitt reports.
Of “total Macintosh sales… the notebook slice has grown from 55% to 61% over the past two years,” Elmer-Dewitt reports. “All told, the MacBook share of Apple’s total revenue has grown from 22% (55% of 40%) in 2006 to nearly 29% in 2008.”
Elmer-Dewitt reports, “Apple may have only 8.4% of the domestic computer market, but it sells nearly one of three high-end notebook machines. What would happen if, as widely rumored, Apple comes out Tuesday with a MacBook that sells for less than $900? Or, as some reports have it, less than $800? Only good things…”
Full article, with nice clear pie charts, here.
[Thanks to MacDailyNews Reader “Martin” for the heads up.]
Apple pie charts maybe?
Just because the iPhone’s revenues are deferred, doesn’t mean they aren’t there. That’s looking at Apple’s numbers as reported by their accountants, without actually looking at the business. The iPhone leg of the business is NOT short. There’s going to be about $9B in sales this year on iPhones. That’s not a SHORT leg.
Over the next several years, Apple’s Macbooks / Powerbooks will continue to see an increase in market share, while Windoze portables (HP, Asus, Acer, Dell, et al) continue to lose it.
Expect to see 2 or 3 Windoze box makers consolidate or go out of business in the next 12 months…
you heard it here first.
“But the iPhone leg is still pretty short, thanks in part to deferred revenues.”
That’s why the business model’s secret pet name is “Eileen.”
Apple PowerBooks going to see an increase in market share?
Do you know something that we don’t?
Apple may only have a three-legged stool in the shiney forms of the iPhone, iPod and MacBooks, but it’s better than Micro$oft’s stinky little brown Vista and Balmer stools..!
Too many times the, er, chair’s hit the fan…
I love my PowerBook, I gave it to my girlfriend about a year ago (I ‘upgraded’ to a MacBook – CS3 runs better on x86) and I miss it. The build quality, the G4 chip… a beautiful machine.
In Japan they call it Irene!!
Wandering joe:
Boo!
three-legged stool made of wood, Peg
At times, they need to prune the business model. It’s a vital three legged stool softener.
MacBooks are purchased in large volumes by Edu.
Get ’em while they’re young!
Mr Elmer-Dewitt makes, I believe, a mistake which is common to a many tech. journalists and others; he writes:-
“The iPod, with a market share somewhere in the 80th percentile, has all but saturated its market.”
He, and many others, overlook the potential of the iPod touch. From all the available evidence, it’s already selling like hot cakes – and no wonder. It’s a brilliant little hand-held computer, which suffers, at the moment, from its name: i.e. ‘iPod’.
It should get it’s own nomenclature (like the iPhone did). I suggest ‘iTouch’; because at the moment it gets a bit lost among the other ‘iPods’.
The fact is though that, like the iPhone, the touch is a whole lot more than an iPod.
It’s got, however, a huge advantage over the iPhone.
The TCO of the iPod touch is just just a fraction of that ot the iPhone.
The starting price of the touch ($ 229,-) is not much more than that of the 16 GB nano ($199,-), and the kids (and adults) are catching on.
The touch is going to be Apple’s new success story and, I blieve, eventually outsell the iPhone.
Mr Elmer-Dewitt makes, I believe, a mistake which is common to a many tech. journalists and others; he writes:-
“The iPod, with a market share somewhere in the 80th percentile, has all but saturated its market.”
Actually, that should read “with market share somewhere of over 80 percent”
It is NOT percentile. He is trying to come off as looking smarter than he is, and failing miserably.
United States of Generica,
“Apple PowerBooks going to see an increase in market share? Do you know something that we don’t?”
You caught me. He’s helping me clone my old PowerBook.
“I suggest ‘iTouch'”
That’s already what everyone calls it.