“NPD measures in-store and online sales to compile the numbers… One factor helping Apple is average selling price. The Mac maker has largely chosen not to compete with Windows PC manufacturers below $1,000. While price wars continue at the low end among Windows PC manufacturers, Apple’s entry-level iMac starts at $1,199. True, Apple offers the Mac mini for $599 or $799, but the ASP is considerably higher than comparably priced Windows PCs. Low-cost Windows PCs typically come with monitor, keyboard and mouse, which are all extra-cost items for Mac mini unless the buyer uses existing gear,” Wilcox reports.
“In October, the Mac desktop ASP was $1,338, down from $1,390 in April and $1,581 in October 2008, according to NPD. By comparison, Windows desktop PC ASP was $491, or nearly $900 less than the Mac desktop. Generally, Apple also captures more revenue share on much smaller sales. For example, according to Apple SEC filings, worldwide, the company shipped 3.05 million Macs — only 787,000 of them desktops — in third calendar quarter,” Wilcox reports. “By comparison, HP shipped 16.1 million PCs and Acer 12.5 million, according to Gartner.”
Wilcox reports, “The Mac laptop ASP also is much higher than Windows notebooks: respectively, $1,410 to $519 in October, according to NPD. Apple sells fewer units, but commands higher margins on every one than Windows PC manufacturers.”
Full article here.
Buying quality is like buying oats. If you want good, freh oats, you’re going to have to pay a fair price. But if you want oats that have already been through the horse . . . well, they’ll cost less.
Headline coming soon:
“98% of the money spent at U.S. repairs of desktop PCs was spent on Windows’ PCs”
Apple does NOT need to make an el cheapo notebook. Take a look around college campuses and cafes and you’ll see Macbooks all over the place. Apple has been able to thrive during the tough economic times because they offer true value for the money. Dell raced to try and be 31 in the market and sacrificed profit to try to become the leader. Instead, they lost the race and sacrificed their financial stability. Let others play in that arena. If you’re not making a reasonable profit you can’t invest money in R&D;and in new technologies. Eventually you’ll lose market share and profit.
Apple is successful BECAUSE they don’t sell crap. Why do some posters always seem to want Apple to sell low costs machines in order to gain market share.
That is counter intuitive.
Mr. Reeeeeeeee. “You sir are a ass.” Dickens.
Well I am buying a new 21″ iMac tomorrow, the bottom one , so I tell myself, I know from past experiance, once I step into the Apple store, I’ll leave with a 27″, an several iPods for gifts
once you are in the store, it’s hard not to justify the higher item!!!! Aarrgggg
Apple does not make PCs with a different OS on board.
Apple may use the same Intel core 2 duo but it’s this year’s core 2 duo running at the highest or second highest rate available. Apple doesn’t use Intel’s bargain basement 1 to 2 year old crap.
Apple uses the finest screen technology available not the cheap crap on 90% of PC screens.
Apple uses top end components with the lowest failure rate available. PC makers use the cheapest components they can find. Failure rates mean nothing to them.
Apple makes their own mother boards. No crappy Intel motherboards in Apple products.
You can’t buy equivalent to Mac hardware from a PC assembler for any price.
Take your netbooks and shove them where the Sun don’t shine.
News Flash!
Mr. Reee was clearly using sarcasm. Read his post.
I have a Chevy Cobalt that works just as well as your Mercedes. It can take to exactly the same places your Mercedes can. Therefore it is just as good as your Mercedes, just a lot cheaper.
I totally agree that 48% of market revenue isn’t sustainable.
That number just has to give over the next couple of years. My guess is that after the holidays we’ll see 49-50%, and next year closer to 50-52%, and onward from there.
Seriously though, I have to wonder what’s going to happen in the portable market (where Apple’s revenue share is less, but still very impressive), especially in regards to netbooks. I know a lot of people who are happy with them at first, but then realize they’re not much better than iPhones, and in some cases worse (more expensive, bigger, less likely to use software, still need a phone, etc…).
Furthermore, the lower the price gets, the larger percentage the Microsoft tax is. Eventually we hit a base price for netbooks that can’t go any lower. However, the appeal of the product doesn’t increase because of the physical constraints. In other words, the market matures. However, unlike when other markets mature, this market may see people graduating to other products…like iPhone (or other smart phones), full notebooks, or whatever apple does with a tablet.
Wow….the “savings” is really mind blowing. However I can only see people who are smug enough to buy it, are blinded by their own smugginess to think that these are actual “savings”.
CRAPple should really feel embarassed about these “savings”. It’s a joke and to be quite frank, it’s making the consumer look stupid if you actually buy into it. Christmas savings (especially black friday savings), is about saving more then $150 dollars. This is pretty much student based discounts, just substituted for black friday.
But this is very typic CRAPple propoganda. When they compare speeds by their own products, by saying “Oh, it’s 2.5x faster…..it’s 1.5 times faster….it’s 2 times faster.” pointing out insignificant numbers to make it look like they have something incredible to report with numbers. They do the same here…
An original iMac price is $1,599.99, now if they were to put that next to their “bargain price” of $1,467.00 looks totally insignificant, so they have to put the $132 “saving” in red because your eyes will immediately see $1599.99 and $132.
I really hate CRAPple’s business practices and their own smug approach with how to sell and market things. I’m not ripping on their OS or Hardware, because I use it at work, and it’s great to use. But their business practices are as terrible as Sony’s.
Sorry for the rant, Happy Holidays. MAC SUCKS!.
http://www.bing.com When it comes to decisions that matter, Bing & Decide
“The larger questions: Can Apple sustain such high desktop dollar share? Does Apple benefit long-term from the trend? “No” is likely answer to both questions.”
How “long term”? How long has Apple had these margins? Some people will never accept that Apple is doing well no matter how well the do.
“Wow….the “savings” is really mind blowing. However I can only see people who are smug enough to buy it, are blinded by their own smugginess to think that these are actual “savings”.
Are you assuming that the average Windows pc and the average Mac are equivalent?
If you did, that number would look crazy. Instead consider that people who are looking for cheap MS Word/Internet boxes don’t touch Macs, and people who want more go for Macs. It makes a little more sense that way.
I’m a PC states that he uses Macs at work and likes them then says that MACs sucks in the next sentence. Thanks for letting us know your boyfriend’s name
” width=”19″ height=”19″ alt=”tongue laugh” style=”border:0;” />
While this is excellent news, don’t get too carried away.
It said 48% of the money spent at U.S. ~~RETAIL~~ was spent on Macs.
It’s good that people choose to spend so much on Macs, but business customers buy a hell of a lot of computers and don’t buy retail. They don’t buy many Macs either. Those purchases are not included in this particular statistic, so you can’t attach too much significance to it.
But it’s still an intriguing statistic.
“Apple also captures more revenue share on much smaller sales”
Can this statement at least put to bed the ridiculous argument that Mac’s cost about the same as PC’s? There’s no way you can sell 90% “fewer” units, but have almost half of a “all” the revenue, and be about the same price…full stop.
Sure, $2,000 iMac’s cost about the same as the $2,000 PC’s (rolls eyes). Most people aren’t buying $2,000 PC’s though, they’re buying $300 to $500 ones. The people that do buy $2,000 PC’s aren’t going to pay that for half the RAM, half the HD space and last years video card.
That is why OSX will not be sold for generic hardware. The day they do, Apple becomes a software company because they wouldn’t move enough over priced hardware to keep the lights on.
So rejoice that we are a small exclusive club, with an expensive entrance fee. We’ll grow market share some to be sure. But never will we displace the hoards buying $300 PC’s that come with a flat panel, printer, ream of paper, ink cartridges, a desk and chair, a pair of shoes and airfare with two tickets to Disneyland.
It’s silly to compare a $2,000 Mac to a $300-$500 PC and use it as “proof” that they’re more expensive, because that $300-$500 PC isn’t comparable to the $2,000 Mac in hardware or build quality. They belong to two opposite ends of the market, the low end and the high end.
If you want to figure out whether or not Macs are overpriced, then you need to compare them against similar PCs, and when you do that, the PC winds up costing about the same, sometimes more, than the Mac.
Sadly, though, I don’t think anything will ever be enough to put the ridiculous argument that Macs are overpriced to bed considering the vast amounts of time and money Microsoft spends engraining the public with FUD. Or at least trying to.
@ @JerryT,
No shit sherlock. Did you even read my post? You seemed to take the exact opposite away from what I actually said.
I said of course you can compare a $2,000 iMac to a $2,000 PC and they cost about the same…then to emphasize the point I added the sarcastic “rolls eyes”. Then, importantly, I added “BUT MOST PEOPLE AREN”T BUYING $2,000 PC’S THOUGH, THEY ARE BUYING $300 TO $500 ONES. This is evidenced by Apple making almost half of the money being spent on PC’s in total, yet only selling 1 out of every 10 units.
So I agree with you. It is SILLY to compare a $2,000 iMac to what MOST people buy, because the $2,000 iMac is vastly more expensive than what most people purchase. So we should stop doing it. Apple will not compete at the price point that most shoppers spend. So don’t expect “huge” market share increases.
Also note that I said of the people that DO purchase a $2,000 PC, they likely wouldn’t choose the Mac as you get about half of everything on the Mac vs. what you get on the PC for the same money. Take a look at any big computer retail website and see what you get for $2,000. Most of the time you get 6-8 Gigs of RAM, the iMac has 4, you get a TB HD, the iMac 500Gb, and the video card on all stock Macs is last years low end crap as far as the enthusiast is concerned.
The $2,000 dollar and up PC buyer is typically a gamer or a hardware enthusiast so they won’t be getting a Mac. Plus this segment notoriously build their own systems to get even more value and power for their dollar.
Get what you pay for? Sure! OSX better than Windows? Absolutely. But that isn’t the debate. The debate is that the Mac is as affordable as the PC and the fact is that what most people spend on their Dull or emachine is vastly less.
Will that Dull be junk in a year or two and need to be replaced? Yep, and they still will have spent about half of what the iMac costs after buying two of the PC’s. It’s very hard to change this perception and mind set.
@ @JerryT,
Here’s an example from the Micro Center website:
PowerSpec G200
Intel® Core(tm) i7 Processor 920 (quad core)
6GB DDR3 RAM (Expandable to 16GB)
2 640GB 7,200RPM Serial ATA Hard Drives (Raid 0 Configuration)
SuperMulti 8x Double Layer DVD±RW Drive
2 ATI Radeon 4670’s in ATI CrossFire Mode (2 video cards)
1GB Video Memory each Video Card (2GB total video RAM)
10/100/1000 Gigabit Ethernet Network
All of this for $1,499. They didn’t have a $2,000 PC that wasn’t a server.
Plus you get an 8-in-1 Media Card Reader, 7.1 Channel Surround Sound and other crap.
You telling me that you think that the enthusiast or gamer will spend $500 more and get way less on the iMac so they can run games in bootcamp? We know that the $300 buyer won’t in any significant numbers.
We are an exclusive club mate. Enjoy that. It sets us apart.
“I’m not a big believer in statistics, but that’s a mighty strong number!”
Yep. That ASP is impressive. The average Mac sold now costs about 3x as much as the average PC.
“About 10% of market share and 47% revenue share.”
Yeah, for retail vs online and direct to business sales. Macs are one of the few machines you get no different deal on if you buy it online or in a store, so why buy online? And that’s 3% market share overall not 10%
“You can’t buy equivalent to Mac hardware from a PC assembler for any price.”
Sure you can. The same guys who build mass market motherboards and HP and Dell PCs are the guys who build Macs for Apple. Apple doesn’t build anything itself.
But it’s great that you perceive the value of an Asus PC with an Apple sticker on it to be higher than an Asus PC with an Asus sticker. Creating that perception is Steve Job’s true genius.
Just a thought…
Look deeper at the revenue stream. Apple sells fewer machines than the other PC makers. OK, no problem with that. Apple makes more money per piece than the other PC makers. OK, no problem with that.
Now what is happening out there in the computer world today?
Apple is keeping their employees at work. Apple is increasing their R&D;. Apple is expanding their market share. The other PC makers and laying off workers, shutting down factories, using cheaper (don’t confuse this with less expensive) parts, R&D;departments are seeing budgets cut.
Which company do you want to buy a machine from: Apple- the one growing, increasing their future products, keeping people employed, and healthy? or the other PC makers- the ones loosing market share, loosing money, laying off our neighbors, making their machines as cheap as possible?
You do the math, it doesn’t take a rocket scientist long to figure out which company to buy a machine from. Matter of fact, most rocket scientists do buy Apple products. Go figure…
“You do the math, it doesn’t take a rocket scientist long to figure out which company to buy a machine from. “
97% of people do the math and come up with an answer other than Apple.
Congratulations to Microsoft today, with Windows 7 installed base in a few short months surpassing all Macs ever sold.
The example above is something that I worry about equally better, how to show your personal actual exuberance and percentage the fact that your merchandise is useable in this subject.
Banner Prints